18 Oct 2013 AMC - Google broke $1000 for the first time! Led Nasdaq into higher highs
Market Summary
European Markets Closing Prices
European markets are now closed; stock markets across Europe performed as follows:
European markets are now closed; stock markets across Europe performed as follows:
·
UK's FTSE: + 0.7%
·
Germany's DAX: + 0.6%
·
France's CAC: + 1.1%
·
Spain's IBEX: + 0.8%
·
Portugal's PSI: + 0.1%
·
Italy's MIB Index: + 0.4%
·
Irish Ovrl Index: + 0.9%
·
Greece ATHEX Composite: + 2.4%
Before Market Opens
S&P futures vs fair value:
+3.70. Nasdaq futures vs fair value: +22.20.
The S&P 500 futures trade higher by 0.3%.
It was a sea of green across Asia as all of the major bourses, aside from Japan's Nikkei (-0.2%), ended with gains. The overnight enthusiasm came following in-line Chinese Q3 GDP (7.8%), and was supported by an underlying bid following yesterday's reversal on Wall Street. The Shanghai Composite (+0.2%) managed to eke out a small gain, but Hong Kong's Hang Seng was more impressive, posting a 1.1% advance. However, the big winner was India's Sensex (+2.3%) as trade rallied to a three-year high. Meanwhile, Japan's Nikkei (-0.2%) lagged as a strong yen weighed. S&P chimed in overnight, reaffirming its ‘AA-‘ rating while maintaining a negative outlook and saying that a downgrade remains possible if the Japanese government fails to implement reform. Other Chinese data showed fixed asset investment is up 20.2% year-to-date (20.4% expected) and industrial production advanced 10.2% year-over-year (10.1% expected).
The S&P 500 futures trade higher by 0.3%.
It was a sea of green across Asia as all of the major bourses, aside from Japan's Nikkei (-0.2%), ended with gains. The overnight enthusiasm came following in-line Chinese Q3 GDP (7.8%), and was supported by an underlying bid following yesterday's reversal on Wall Street. The Shanghai Composite (+0.2%) managed to eke out a small gain, but Hong Kong's Hang Seng was more impressive, posting a 1.1% advance. However, the big winner was India's Sensex (+2.3%) as trade rallied to a three-year high. Meanwhile, Japan's Nikkei (-0.2%) lagged as a strong yen weighed. S&P chimed in overnight, reaffirming its ‘AA-‘ rating while maintaining a negative outlook and saying that a downgrade remains possible if the Japanese government fails to implement reform. Other Chinese data showed fixed asset investment is up 20.2% year-to-date (20.4% expected) and industrial production advanced 10.2% year-over-year (10.1% expected).
·
In
Japan, the Nikkei shed 0.2%
as trade continues to struggle near resistance that has been in place since the
early summer. Automakers were weak as Toyota gave up 1.0% and Honda Motor shed
0.3%. Elsewhere, financials slightly outperformed as Mitsubishi UFJ Financial
ticked up 0.2%.
·
Hong
Kong's Hang Seng finished higher
by 1.1% as trade continues to press resistance in the area. Insurer AIA surged
4.4% after the company reported a jump in new business growth. Meranwhile, PC
maker Lenovo shed 1.7% on reports it was considering a bid for smartphone maker
Blackberry.
·
In
China, the Shanghai Composite
added 0.2% as trade held below the 200-day moving average. Brokerage firms
outperformed with Industrial Securities gaining 1.2%.
Major European indices hover near
their highs as the quiet session continues. In Germany, Angela Merkel's CDU/CSU
alliance has agreed to begin coalition talks with SPD, which is reportedly
looking to replace the current Finance Minister Wolfgang Schaeuble. Elsewhere,
Spanish bad loan ratio rose to a record level of 12.1% in August. Economic data
was limited to Spain's industrial new orders, which fell 5.4% year-over-year
(4.2% expected, 1.5% previous).
·
Germany's DAX is higher by 0.2% as health care
outperforms. Bayer, Fresenius Medical, and Henkel are all up between 1.1% and
2.0%. SAP is the weakest index member, down 1.4%.
·
Great
Britain's FTSE trades up 0.5% with
consumer names in the lead. Reckitt Benckiser and Whitbread are both up near
2.0%. Media names lag with British Sky Broadcasting and ITV down 1.8% and 0.5%,
respectively.
·
In
France, the CAC holds a gain
of 0.7% as consumer names contribute to the strength. Accor and L'Oreal trade
with respective advances of 3.9% and 3.1%.
Market Internals
Leaders and Laggards
Technical Updates
Commentaries
Closing Market Summary: Nasdaq Leads
Equities Higher
The S&P 500 registered its third consecutive gain, rising 0.7% to extend its weekly advance to 2.4%. However, the Nasdaq (+1.3%) was today's standout as Google (GOOG 1011.41, +122.61) made a significant contribution to the relative strength of the tech-heavy index. Shares of Google surged 13.8% after the company surpassed earnings expectations by 37 cents.
Thanks to Google's surge, the tech sector settled in the lead with a gain of 1.8%. Even though the sector ended sharply higher, some other top members underperformed. Qualcomm (QCOM 68.40, -0.30) shed 0.4% and IBM (IBM 173.78, -1.05) fell 0.6% after plunging 6.4% yesterday. Chipmakers sat out the rally asIntel (INTC 23.88, -0.05) slipped 0.2% while the broader PHLX Semiconductor added 0.3%.
Outside of technology, the industrial sector (+1.1%) was the only group that ended with a gain larger than 1.0%. Top sector component General Electric (GE 25.55, +0.87) jumped 3.5% after beating earnings expectations by a penny on a 1.5% year-over-year decline in revenue. Transports also contributed to the sector's strength as the Dow Jones Transportation Average advanced 1.2%. Kansas City Southern (KSU 117.35, +4.19) was the top index component, rising 3.7% despite reporting a bottom-line miss.
Elsewhere, the energy space (+0.9%) outperformed with Schlumberger (SLB 93.99, +2.56) providing a measure of support after beating on earnings. Crude oil ended with a modest gain of 0.2% at $100.84 per barrel.
Also of note, the financial sector (+0.3%) underperformed even as Morgan Stanley (MS 29.69, +0.76) rose 2.6% after beating on earnings and revenue. JPMorgan Chase (JPM 54.30, +0.09) received a late-afternoon boost off its lows amid reports of the bank reaching a $4 billion settlement with the Federal Housing Finance Agency after the FHFA sought as much as $6 billion in damages. Even though financials lagged, the sector was the top performer of the week, rising 5.1%.
On the downside, the health care space (-0.4%) ended in the red. Intuitive Surgical (ISRG 376.52, -22.61) weighed following its top-line miss while biotechnology underperformed as well. The iShares Nasdaq Biotechnology ETF (IBB 206.78, -1.59) lost 0.8%.
Treasuries ended little changed with the 10-yr yield at 2.59%.
Trading volume was aided by options expiration as nearly 900 million shares changed hands on the floor of the New York Stock Exchange.
September existing home sales will be reported on Monday at 10:00 ET. On the earnings front, McDonald's (MCD 95.20, -0.27), Halliburton (HAL 52.47, +0.75), and SAP (SAP 73.75, +0.86) will report their quarterly results prior to the opening bell.
The S&P 500 registered its third consecutive gain, rising 0.7% to extend its weekly advance to 2.4%. However, the Nasdaq (+1.3%) was today's standout as Google (GOOG 1011.41, +122.61) made a significant contribution to the relative strength of the tech-heavy index. Shares of Google surged 13.8% after the company surpassed earnings expectations by 37 cents.
Thanks to Google's surge, the tech sector settled in the lead with a gain of 1.8%. Even though the sector ended sharply higher, some other top members underperformed. Qualcomm (QCOM 68.40, -0.30) shed 0.4% and IBM (IBM 173.78, -1.05) fell 0.6% after plunging 6.4% yesterday. Chipmakers sat out the rally asIntel (INTC 23.88, -0.05) slipped 0.2% while the broader PHLX Semiconductor added 0.3%.
Outside of technology, the industrial sector (+1.1%) was the only group that ended with a gain larger than 1.0%. Top sector component General Electric (GE 25.55, +0.87) jumped 3.5% after beating earnings expectations by a penny on a 1.5% year-over-year decline in revenue. Transports also contributed to the sector's strength as the Dow Jones Transportation Average advanced 1.2%. Kansas City Southern (KSU 117.35, +4.19) was the top index component, rising 3.7% despite reporting a bottom-line miss.
Elsewhere, the energy space (+0.9%) outperformed with Schlumberger (SLB 93.99, +2.56) providing a measure of support after beating on earnings. Crude oil ended with a modest gain of 0.2% at $100.84 per barrel.
Also of note, the financial sector (+0.3%) underperformed even as Morgan Stanley (MS 29.69, +0.76) rose 2.6% after beating on earnings and revenue. JPMorgan Chase (JPM 54.30, +0.09) received a late-afternoon boost off its lows amid reports of the bank reaching a $4 billion settlement with the Federal Housing Finance Agency after the FHFA sought as much as $6 billion in damages. Even though financials lagged, the sector was the top performer of the week, rising 5.1%.
On the downside, the health care space (-0.4%) ended in the red. Intuitive Surgical (ISRG 376.52, -22.61) weighed following its top-line miss while biotechnology underperformed as well. The iShares Nasdaq Biotechnology ETF (IBB 206.78, -1.59) lost 0.8%.
Treasuries ended little changed with the 10-yr yield at 2.59%.
Trading volume was aided by options expiration as nearly 900 million shares changed hands on the floor of the New York Stock Exchange.
September existing home sales will be reported on Monday at 10:00 ET. On the earnings front, McDonald's (MCD 95.20, -0.27), Halliburton (HAL 52.47, +0.75), and SAP (SAP 73.75, +0.86) will report their quarterly results prior to the opening bell.
Commodities
Closing Commodities: Precious
metals, oil and nat gas all end the week lower
·
Nov crude oil traded
higher today following strong Chinese GDP data. The country's GDP rose 2.2% q/q
vs an expected rise of 1.9%, while the y/y reading came in at 7.8%, as
expected. The energy component climbed to a session high of $101.98 per barrel
in morning pit trade but retreated towards the unchanged line. It settled with
a 0.5% gain at $101.12 per barrel, shaving weekly losses to 0.8%
·
Nov natural gas slid to
a session low of 3.69 per MMBtu but gained momentum in afternoon action. It
managed to erase the earlier losses and settled the session unchanged at $3.76
per MMBtu, booking a 0.3% loss for the week
·
Dec gold traded in
negative territory, dipping to a session low of $1311.20 per ounce in afternoon
pit trade. It eventually settled with a 0.6% loss at $1314.20 per ounce
·
Dec silver chopped
around near the unchanged line. It brushed a session high of $22.05 per ounce
in morning floor action and settled 0.2% lower at $21.92 per ounce. Despite
today's decline, gold and silver booked respective gains of 3.6% and 3.2% for
the week
CBOT
Agriculture and Ethanol/ICE Sugar Closing Prices
·
Dec
corn fell 2 cents to
$4.41/bushel
·
Dec
wheat rose 19 cents to
$7.05/bushel
·
Nov
soybeans fell 1 cent to
$12.91/bushel
·
Nov
ethanol rose 2 cents to
$1.81/gallon
·
Jan
sugar (#16 (U.S.)) rose
0.30 of a penny to 22.28 cents/lbs
Nov natural gas settled unchanged at $3.76/MMBtu
·
Natural gas fell to a
session low of $3.69 but gained momentum in afternoon action. It managed to
erase the earlier losses and settled the session unchanged, booking a 0.3% loss
for the week.
Nov heating oil rose 5 cents to $3.04/gallon
Nov
RBOB gasoline rose 2 cents to $2.67/gallon
NYMEX
Energy Closing Prices
Nov crude oil rose $0.49 to $101.12/barrel
·
Crude oil traded higher
today on strong China GDP data. The country's GDP rose 2.2% q/q vs expectations
of 1.9% (the y/y reading came in at 7.8%, as expected). The energy component
climbed to a session high of $101.98 in morning pit action but retreated towards
the unchanged line. It settled with a 0.5% gain, shaving weekly losses to
0.8%.
Treasuries
On other news....
Earnings Preview for the week of
October 21 - 25
Of the companies reporting earnings for the week of October 21 - 25 some of the bigger names include:
Of the companies reporting earnings for the week of October 21 - 25 some of the bigger names include:
·
Monday:
o Pre Market - HAL, MCD, PHG, MAN, SAP, VFC, SAH, HAS, GCI
o After Hours - TXN, DFS, WRB, VMW, NFLX, RCII
·
Tuesday:
o Pre Market - WIT, UTX, NVS, LMT, DAL, DD, EMC, TRV, FCX, KMB, WHR, ITW,
CNC, STT, RAI, PNR, R, AKS, ABG, RF
o After Hours - AMGN, ACE, CNI, BRCM, STM, FTI, NBR, CLS, JNPR, RHI, UIS,
APOL, BCR
·
Wednesday:
o Pre Market - BA, WLP, CAT, GD, NOC, LLY, AEP, BMY, LCC, TMO, NSC, MSI,
CMC, FDML, DPS, OCR, CP, ECA, WYN, NLSN, OC, ARG, LO, SLGN, ATI
o After Hours - T, AIZ, TEX, ORLY, SYMC, ESV, NXPI, TSCO, RE, FBHS, LRCX,
SWFT, TMK, VAR, CCI, CTXS
·
Thursday:
o Pre Market - CAJ, ERIC, F, MCK, BG, DOW, ABB, MMM, IP, AVT, CS, RTN, XRX,
CVE, LUV, MO, CL, AN, RCI, XEL, CAM, RS, PCP, GPI, RCL, BLL, CCE, BEN, ALV,
WCC, HSY, BSX, EME, CMS, CELG, POT, HOT, PHM, ORI, NBL, UFS, ALK, BMS, SJR,
SHPG, FAF, TKR, GG, ZMH
o After Hours - BSAC, ESRX, MSFT, AMZN, IM, WDC, CB, PFG, EMN, KBR, NCR, CLF,
USTR, FLS, SPN, CINF, CA, FSL, MTW, POL, CERN
·
Friday:
o Pre Market - PG, UPS, ETN, NOV, ABBV, LEA, AON, SHW, DTE, WY, AVY, NWL,
COL, SPG, LPNT
Currencies
Dollar Hovers Flat: 10-yr:
unch..2.595%..USD/JPY: 97.90..1.3675
Dollar Hovers Flat: The Dollar Index has erased its early losses and now holds little changed near 79.65. Early selling pressed the Index to 79.50, its lowest level in eight months, but a steady bid over the course of U.S. trade has lifted it back to the flat line. Click here to see a daily Dollar Index chart.
Dollar Hovers Flat: The Dollar Index has erased its early losses and now holds little changed near 79.65. Early selling pressed the Index to 79.50, its lowest level in eight months, but a steady bid over the course of U.S. trade has lifted it back to the flat line. Click here to see a daily Dollar Index chart.
·
EURUSD is +5 pips at 1.3675 as trade looks for
its best close in 11 months. Some early excitement ran the single currency
above the 1.3700 level, but those gains have been unable to hold amid a session
free of any meaningful news or data. Eurozone data out Monday is limited to
German PPI.
·
GBPUSD is +5 pips at 1.6165 as trade struggles to hold
its gains. Early buying ran cable above the 1.6200 level, but sellers stepped
in to defend the October highs, and now have action holding just off session
lows. The 1.5950/1.6000 area is home to some meaningful support.
·
USDCHF is -5 pips at .9020 as trade has been locked in
a tight 30 pip range. Traders are paying close attention to the .9000 level as
support there has held up since the fall of 2012. Bulls will breathe a bit
easier if they are able to regain the .9150/.9200 area.
·
USDJPY is flat at 97.90 as trade lingers in the middle
of the day's range. Some overnight buying made for a test of the 50 dma
(98.05), but bulls have so far been unable to retake that level. The 97.00 area
remains important as support is helped by the 200 dma. Japan's trade balance
will cross the wires Sunday evening.
·
AUDUSD is +40 .9665 as action holds at a four
and a half-month high. The hard currency has been boosted by the
stronger than expected Q3 Chinese GDP and the appetite for risk.
·
USDCAD is -5 pips at 1.0290 as trade has been limited
to a tight 25 pip range. The pair saw little reaction to this morning's CPI
data (0.2% actual v. 0.1% expected), but remains on track for a third straight
day of losses. The 1.0250 area looms large as trendline support of the
September 2012 lows coincides with the 200 dma. Canada's wholesale sales data
is due out Monday.
Weekly Analysis
Week 38
Technical Updates
Briefing's Commentaries
Week in Review: Equities Notch Fresh
Record Highs as Government Shutdown Ends
On Monday, equity indices posted modest gains even as the agreement to end the partial government shutdown and extend the debt ceiling remained elusive. The S&P 500 added 0.4%. Stocks slumped at the open after the weekend ended without any concrete progress in Washington. Despite the opening weakness, dip-buyers were quick to step in, drawing encouragement from late-morning reports indicating a bipartisan meeting was scheduled to take place at the White House at 15:00 ET. The technology sector (+0.5%) fueled much of the session-long rebound as top components rallied. Netflix (NFLX 333.50, +3.40) also displayed strength, surging 7.8% after reports indicated the company is exploring making its service available through cable set-top boxes. The company also said it entered into a production deal with Sony (SNE 19.61, -0.42).
Tuesday saw the S&P 500 settle lower by 0.7% after contradicting headlines from Washington fostered volatile price action throughout the session. Equity indices displayed modest losses at the open, but were able to turn positive by late afternoon. The rebound was predicated on optimism associated with budget talks in Washington after Senate Majority Leader Harry Reid was quoted as saying ‘tremendous progress' had been made. Selling pressure intensified during the final 90 minutes of the session amid headlines indicating the Senate has halted its negotiations pending the outcome of the House vote. California Senator Dianne Feinstein weighed in on the situation, saying budget talks have ‘all fallen apart.' All ten sectors ended in the red with countercyclical consumer staples (-0.9%) and utilities (-1.4%) leading to the downside. Among staple stocks, Coca-Cola (KO 38.78, +0.23) lost 0.7% following its in-line earnings report.
On Wednesday, the S&P 500 settled higher by 1.4% with participants rushing into equities as Washington lawmakers appeared to be on the verge of striking a deal that would fund the government through January 15 while extending the debt ceiling until February 7, and maintaining the sequester. All ten sectors posted gains with financials (+2.2%) ending in the lead. The sector received support from Bank of America (BAC 14.63, -0.03) and PNC Financial (PNC 75.04, +0.36) after both banks reported bottom-line beats.
The major averages ended Thursday's session on a mixed note as the Dow shed just over two points while the S&P 500 added 0.7% to notch a fresh all-time high at 1,733.45. With the third quarter earnings season heating up, the Dow Jones Industrial Average was victimized by disappointing results from two market-moving names. Goldman Sachs (GS 158.69, +0.37) and IBM ended with respective losses of 2.4% and 6.4% after both reported bottom-line beats on light revenue. Goldman Sachs missed top-line estimates by roughly $500 million while IBM reported revenue $1 billion below analyst expectations. Shares of IBM weighed on the technology sector (-0.2%) while financials (+0.9%) were able to shake off Goldman's weakness with help from American Express (AXP 80.52, +0.29). The Dow component jumped 5.1% following its earnings beat.
On Monday, equity indices posted modest gains even as the agreement to end the partial government shutdown and extend the debt ceiling remained elusive. The S&P 500 added 0.4%. Stocks slumped at the open after the weekend ended without any concrete progress in Washington. Despite the opening weakness, dip-buyers were quick to step in, drawing encouragement from late-morning reports indicating a bipartisan meeting was scheduled to take place at the White House at 15:00 ET. The technology sector (+0.5%) fueled much of the session-long rebound as top components rallied. Netflix (NFLX 333.50, +3.40) also displayed strength, surging 7.8% after reports indicated the company is exploring making its service available through cable set-top boxes. The company also said it entered into a production deal with Sony (SNE 19.61, -0.42).
Tuesday saw the S&P 500 settle lower by 0.7% after contradicting headlines from Washington fostered volatile price action throughout the session. Equity indices displayed modest losses at the open, but were able to turn positive by late afternoon. The rebound was predicated on optimism associated with budget talks in Washington after Senate Majority Leader Harry Reid was quoted as saying ‘tremendous progress' had been made. Selling pressure intensified during the final 90 minutes of the session amid headlines indicating the Senate has halted its negotiations pending the outcome of the House vote. California Senator Dianne Feinstein weighed in on the situation, saying budget talks have ‘all fallen apart.' All ten sectors ended in the red with countercyclical consumer staples (-0.9%) and utilities (-1.4%) leading to the downside. Among staple stocks, Coca-Cola (KO 38.78, +0.23) lost 0.7% following its in-line earnings report.
On Wednesday, the S&P 500 settled higher by 1.4% with participants rushing into equities as Washington lawmakers appeared to be on the verge of striking a deal that would fund the government through January 15 while extending the debt ceiling until February 7, and maintaining the sequester. All ten sectors posted gains with financials (+2.2%) ending in the lead. The sector received support from Bank of America (BAC 14.63, -0.03) and PNC Financial (PNC 75.04, +0.36) after both banks reported bottom-line beats.
The major averages ended Thursday's session on a mixed note as the Dow shed just over two points while the S&P 500 added 0.7% to notch a fresh all-time high at 1,733.45. With the third quarter earnings season heating up, the Dow Jones Industrial Average was victimized by disappointing results from two market-moving names. Goldman Sachs (GS 158.69, +0.37) and IBM ended with respective losses of 2.4% and 6.4% after both reported bottom-line beats on light revenue. Goldman Sachs missed top-line estimates by roughly $500 million while IBM reported revenue $1 billion below analyst expectations. Shares of IBM weighed on the technology sector (-0.2%) while financials (+0.9%) were able to shake off Goldman's weakness with help from American Express (AXP 80.52, +0.29). The Dow component jumped 5.1% following its earnings beat.
·
DJIA +17.5% YTD
·
S&P 500 +22.3%
YTD
·
Nasdaq +29.6% YTD
·
Russell 2000 +31.3% YTD
Next Week In View
Next Week's Events of Interest
Events and conferences of interest for next week, October 21st-25th, are listed below. For a complete list of next week's events, please see the events calendar.
Monday
Events and conferences of interest for next week, October 21st-25th, are listed below. For a complete list of next week's events, please see the events calendar.
Monday
·
Futurecom 2013
o Scheduled to appear: ORCL, ALU, ALU, ALU,
QCOM, QCOM, ERIC, RKUS, JNPR, ACN, JNPR, EXTR, CIEN, CNSI
·
PDA Phramaceutical
Microbiology Conference
o Scheduled to appear: NDZ
·
PharmAsia Shanghai
Summit
o Scheduled to appear: CI, SNY, NCI, ABT,
MDT, MRK, AZN, AMGN, LLY, CAH, SCR, C, NVS, BAYRY.PK, PFE, BMY, AZN
Tuesday
·
Aberdeen Group 2013
Chief Service Officer Summit
o Scheduled to appear: KSS, PBI, SYK, BERY,
CIEN, EMC, PCRFY.PK, XRX
·
Customer Experience
Management in Telecoms: North America Summit
o Scheduled to appear: CNSI, CMCSA, EGAN,
USM, CTL, RCI, FTR, MTSC, TWC, NTLS, SYKE
·
Apple (AAPL) iPad Event
at 13:00 Eastern
Wednesday
·
Jefferies 3rd Annual
Asia Corporate Access Summit
o Scheduled to appear: CCIH
·
MarkLogic Summit Series
2013: Washington DC
o Scheduled to appear: SGI
·
ROTH Capital Partners
Solar Symposium
o Scheduled to appear: RSOL, ENPH, CSIQ
Thursday
·
Silver Summit
o Scheduled to appear: EXK, RVM, CA:GPR, MGN,
CDE, CA:FVI, CA:SVM, AG, HL, TAHO, PAAS
·
World Cord Blood
Congress Monaco 2013
o Scheduled to appear: KOOL
·
CMS Energy Corp.
Investor Day
o Scheduled to appear: CMS
Friday
·
New York Times Global
Forum Asia
o Scheduled to appear: HPQ
·
American College of
Rheumatology Meeting
o Scheduled to appear: CELG, ATRS, SVNT
·
Mellanox Technologies
(MLNX) Analyst Day
Economic Commentaries
Economic Summary: September Existing
Home Sales Monday morning; Sept Jobs data Tuesday morning
Upcoming Economic Data:
Upcoming Economic Data:
·
September Existing Home
Sales Monday at 10:00 (August: 5.48 mln)
·
September
Jobs data Tuesday at 8:30:
o Nonfarm Payrolls (Briefing.com consensus 183K
vs. 169K in August)
o Nonfarm Private Payrolls (Briefing.com consensus
183K vs. 152K in August)
o Unemployment Rate (Briefing.com consensus 7.3%,
unchanged from August)
o Hourly Earnings (Briefing.com consensus
0.2%, flat month-over month)
o Avg. Workweek (Briefing.com consensus of 34.5,
flat month-over month)
JPMorgan
Chase Follow Up- With regards to the FHFA settlement; this is different from
the DoJ settlement; the FHFA was seeking $6 bln in damages; so a $4 bln number
would be a positive but this is not in regards to the pending DoJ settlement
Treasuries Book Weekly Gains as
Congress Kicks the Can Down the Road: 10-yr: +02/32..2.584%..USD/JPY:
97.80..EUR/USD: 1.3680
·
Treasuries booked solid
gains this week as traders flocked to the complex after Congress
managed to reach an eleventh hour deal to avoid a default and end the
government shutdown. The deal kicks the can to early 2014, funding
the government through January 15 and extending the debt limit until February 7. Click here to see an intraweek
yields chart.
·
Fears
of a default early in the week ran the 4w bill above 0.40%, but the last-minute
deal eliminated default fears and sent the yield tumbling to 0.010%. The action also normalized the front-end of
the curve (4w-3m spread) as it now trades +2bps after inverting to -25bps due
to default fears.
·
Yields in the belly sank
as much as -11bps, and printed at their lowest levels in at least two months. The
5y shaved -8bps in the process of hitting a fresh three-month low while the 10y
erased -10bps to hits its own two-month low near 2.560%.
·
Action in the 10y will
be watched closely over the coming days as trade looks to retake what was
support in the 2.600% region.
·
The long bond ended
in-line with most of the belly, sliding -10bps to 3.654% by Friday's cash
close. The 30y finished the week on its 100 dma.
·
A
flatter curve took shape this week as the 2-10-yr spread narrowed to 227bps.
·
Precious metals saw
solid gains this week with gold +$44 @ $1316 and silver +$0.75 @ $21.90.
·
Monday's
Data: Existing home sales
(10)
·
Fed
Speak: Chicago's Evans
will be on CNBC discussing economic conditions and monetary policy (8).
Jason's Commentaries
Google spiked a good 13% and brought Nasdaq to a new high once again!Bringing up S&P500 to a new high of 1744.5. The market started in a slightly rough mode, but subsequently stabilizes and resumed its uptrend after 11am ET. Healthcare was the only drag on the market last Friday, dragged down by ISRG. Volumes were fairly high as its the expiration Friday. Internals were showing some slight divergence with the TRIN. It was more like a flat to upside day. VIX dropped a 3.26% as well, finding a support level at 12.50. On the Technical Perspective, the Dow was the only laggard amongst the indices and the Nasdaq is bringing the market up higher. I'm unsure how the volatility of the earnings season will affect the uptrend. But i'm sure that the market will give in to the volatility of the earnings and start making some correction before breaking up higher.
Looking ahead of the events, we have the employment report coming out on Tuesday, 830am ET, being delayed by the shutdown of the Government 3 weeks back. Perhaps the market might correct a little as an excuse to take profit after such a massive run. Looking ahead, I'm expecting the market to be flat today.
Market Call: FLAT
Date: 21 Oct 2013
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