20 Dec 2012 AMC

20 Dec 2012

Market Summary 

 Defense Contracts

 Lockheed Martin Corp., Orlando, Fla., was awarded a $161,687,115 firm-fixed-price contract. The award will provide for the modification of an existing contract to procure Modernized Day Sensor Assembly Laser Kits and spare parts. Work will be performed in Orlando, with an estimated completion date of Aug. 31, 2016. One bid was solicited with one bid received. The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-11-C-0120).

Lockheed Martin Corp., Orlando, Fla., was awarded a $96,677,902 firm-fixed-price contract. The award will provide for the modification of an existing contract to procure services in support of the Apache modernized targets acquisition designation sight/pilot’s night vision sensor equipment. Work will be performed in Orlando, with an estimated completion date of Dec. 31, 2015. The bid was solicited through the Internet, with one bid received. The U.S. Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity (W58RGZ-12-C-0009).

Raytheon Space and Airborne Systems, McKinney, Texas, (FA8528-13-C-0031) is being awarded a $150,291,636 firm-fixed-price, cost-plus-fixed-fee and cost-reimbursable-no-fee contract for to procure MQ-1 (Predator) and MQ-9 (Reaper) sensor support and services.  The location of the performance is McKinney, Texas.  Work is expected to be completed by Dec. 31, 2013.  The contracting activity is AFLCMC/WIKBA, Robins Air Force Base, Ga.  

The Boeing Co., St. Louis, Mo., is being awarded a $164,000,000 modification to a previously awarded firm-fixed-price contract (N00019-09-C-0086) to exercise an option for the procurement of 12 Airborne Electronic Attack Group B Kits and four Equivalent Ship-sets of spares for the Royal Australian Air Force.  This contract involves Foreign Military Sales to the Government of Australia (100 percent) under the Foreign Military Sales Program.  Work will be performed in Baltimore, Md. (41.1 percent); St. Louis, Mo. (36.3 percent); Bethpage,  N.Y. (19 percent); and Fort Wayne, Ind. (3.6 percent), and is expected to be completed in March 2015.  Contract funds in the amount of $164,000,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity. 

    Raytheon Co., Integrated Defense Systems, Portsmouth, R.I., is being awarded a $158,571,809 firm-fixed-price contract for the procurement of 48 MH-60R Full Rate Production Airborne Low Frequency Sonar (ALFS) systems (24 Lot X and 24 Lot XI), including associated program management support.  Work will be performed in Brest, France (59 percent); Portsmouth, R.I. (37 percent), and Johnstown, Pa. (4 percent), and is expected to be completed in April 2017.  This contract was not competitively procured pursuant to 10 U.S.C 2304 (c)(1).  Contract funds in the amount of $158,571,809 are being obligated at time of award, $39,642,952 of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-13-C-0012).

 The Boeing Co., Wichita, Kan., is being awarded a $145,000,000 firm-fixed-price contract for the procurement of two C-40A Clipper aircraft for the U.S. Navy.  Work will be performed in Renton, Wash.  (92.7 percent), Seattle, Wash. (4.9 percent), San Antonio, Texas (1.7 percent), Oklahoma City, Okla. (0.7 percent) and is expected to be completed in March 2015.  Contract funds in the amount of $145,000,000 will be obligated on this award, $72,500,000 of which will expire at the end of the current fiscal year.   This contract was not competitively procured pursuant to FAR 6.302-1.   The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-13-C0026). 

         The Boeing Co., St. Louis, Mo., is being awarded a $101,862,000 modification to a previously awarded firm-fixed-price contract (N00019-09-C-0086) to exercise an option for the procurement of 12 EA-18G Lot 37 Full Rate Production (FRP) Airborne Electronic Attack (AEA) Kits.  Work will be performed in Baltimore, Md. (41.1 percent); St. Louis, Mo. (36.3 percent); Bethpage, N.Y. (19 percent); and Fort Wayne, Ind. (3.6 percent), and is expected to be completed in February 2015.  Contract funds in the amount of $101,862,000 are being obligated at time of award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Market Internals

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Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:20 ET Dow +59.75 at 13311.72, Nasdaq +6.02 at 3050.38, S&P +7.88 at 1443.69 :[BRIEFING.COM] The major averages finished higher despite showing indecision in the early part of the session. The fiscal cliff remained the focal point, and investors showed optimism in Washington's ability to get a deal done. Lawmakers from both sides of the aisle continued to exchange jabs, and Speaker Boehner said the President and the Democrats have not done enough to avoid falling off the cliff. Mr. Boehner touted the proposal he put forth, which is expected to face a House of Representatives vote tonight around 19:30 ET. The S&P 500 gained 0.6% ahead of this evening's vote.  The financial sector was the top performing space in the S&P 500 and the SPDR Financial Select Sector ETF (XLF 16.70, +0.23) settled higher by 1.4%. Of the majors,Bank of America (BAC 11.52, +0.33) gained 3.0%, and was the top advancer.  NYSE Euronext (NYX 32.25, +8.20) surged 34.1% after agreeing to be acquired byIntercontinentalExchange (ICE 130.10, +1.79) for $33 per share. The transaction price represents a 37.2% premium to NYSE Euronext's Wednesday close.  On the downside, Discover Financial (DFS 38.41, -1.36) slid 3.4% following mixed earnings. During the fourth quarter, the company earned $1.07, which was $0.04 below the Capital IQ consensus estimate. However, Discover's revenue of $2.00 billion exceeded expectations.  Technology stocks lagged the broader market and Apple (AAPL 521.73, -4.57) lost 0.9%.  Among notable tech earnings, technology consultant Accenture (ACN 69.02, -1.38) slid 2.0% after reporting its quarterly results. While the company beat on earnings, its revenue reflected a slowdown in corporate spending.  On the upside, Jabil Circuit (JBL 19.95, +1.38) surged 7.4% after beating on earnings and revenue. In addition, Jabil issued downside second quarter earnings guidance while revenue is expected to be in-line with analyst estimate.  The health care space was the weakest performer, and a handful of names moved on news. Allscripts Healthcare (MDRX 9.14, -1.54) sank 14.4% after the company concluded the review of its strategic alternatives, and decided against a sale. In addition, Allscripts named Paul Black as its Chief Executive Officer. Mr. Black will replace Glen Tullman, who will resign. Also of note, Lee Shapiro will step down from his current function of president.  Elsewhere, Merck (MRK 42.15, -1.50) shed 3.4% after its trial for TREDAPTIVE yielded disappointing results.  On the upside, The Medicines Company (MDCO 23.71, +1.42) surged 6.4% following the announcement of positive trial results for oritavancin in the treatment of acute bacterial skin and skin structure infections.  The November existing home sales report saw its annualized rate increase to 5.04 million units. An improvement in the sales of existing homes suggests new homes may face an increase in demand as well. Homebuilders responded generally well to the news. MDC Holdings (MDC 36.87, +1.24) advanced 3.5% and DR Horton (DHI 20.10, +0.15) rose by 0.8%.  Elsewhere, KB Homes (KBH 15.60, -1.06) slid 6.4% despite beating on earnings and revenue. During the fourth quarter, the homebuilder earned $0.10, which was $0.04 better than the Capital IQ consensus estimate. Meanwhile, its revenue of $578.2 million also exceeded expectations.  The latest weekly initial jobless claims count totaled 361,000, which was worse than the 345,000 that had been expected by the Briefing.com consensus. The tally was above the revised prior week count of 344,000. As for continuing claims, they rose to 3.225 million from 3.213 million.  The third estimate of third quarter GDP showed growth of 3.1%, which was better than the 2.7% that had been expected by the Briefing.com consensus. However, the third quarter GDP Deflator was left unrevised at 2.7%.  The November Housing Price Index from the FHFA increased by 0.5%, which follows a 0.2% increase observed during the prior month.  The Philadelphia Fed Survey ticked up to +8.1 for December. This comes after November's reading of -10.7. Economists polled by Briefing.com had expected that the Survey would improve to a reading of -1.3.  Also of note, leading indicators for October decreased by 0.2%, which followed the prior month's increase of 0.2%.  European markets ended today's session on a mixed note. The United Kingdom's FTSE shed 0.1% while France's CAC and Germany's DAX both added 0.1%.  In the United Kingdom, Carnival (CCL 36.99, -2.07) was the weakest performer. The cruise-line operator lost 6.1% after reporting disappointing earnings. On the upside, media company ITV gained 3.1%.  In France, financials AXA and Credit Agricole led the index with respective gains of 1.1% and 1.3%. Software company Cap Gemini was the weakest index component, and lost 2.7% following disappointing earnings from Accenture.  German stocks eked out slim gains and drug makers led the way. Bayer and Merck both added near 1.0%. Meanwhile, ThyssenKrupp was the weakest performer. The steelmaker lost 2.1% after railroad Deutsche Bahn filed a lawsuit which named ThyssenKrupp as one of the defendants.  Tomorrow, November personal income, personal spending, core PCE prices, durable orders, and durable orders ex-transportation will all be reported at 8:30 ET. Lastly, the final December Michigan Sentiment Survey will be released at 9:55 ET. Note that quadruple witching will take place tomorrow. ..NYSE Adv/Dec 2066/962. ..NASDAQ Adv/Dec 1502/961.

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Jason's Commentaries

WE SURVIVED THE DOOMSDAY! 
The proof that you are reading my DMA means that you're still alive! Another 60 points gain on the DOW... Santa Claus has came to the town! We're not far away from the the 13400 resistance but ahead of the long weekend ahead, I reckon we're likely to rally like no one's business. 

  Despite a lousy unemployment claims, the market showed strength to make a gain of 60 points. On the internals, the bulls overran the bears.The Financials made a huge gain yesterday and lifted the market. BFA gained a good 3% while the other financials lead. The only laggard was Tech again, being dragged down by AAPL by a 0.9% loss.

I'm expecting today to be a bullish day and not wanting to mess around with Santa and the durable goods order isn't gonna move the market much today anyway.
 

 MERRY XMAS IN ADVANCE PEEPS! 

Market Call:UP

Date: 21 Dec 2012