20 Feb 2013 AMC

19 Feb 2013

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:30 ET Dow -108.13 at 13927.54, Nasdaq -49.18 at 3164.41, S&P -18.99 at 1511.95 : [BRIEFING.COM] The S&P 500 settled lower by 1.2% after spending the entire session in negative territory. Equities began the day on a lower note amid mixed housing data and hovered near their lows ahead of the Fed's minutes. Stocks then fell to fresh lows after the minutes indicated Committee members saw little change to the economic outlook. Along those lines, members—with the exception of Esther George—maintained their support for the continuation of highly accommodative policy. Homebuilders were under pressure after Toll Brothers (TOL 33.56, -3.34) reported its quarterly results this morning. The builder missed on earnings and revenue, but saw an increase to its backlog. In addition, the company raised its full-year 2013 gross margin guidance during its earnings call. Homebuilders sold off in reaction to Toll's earnings and afternoon weakness pushed builder stocks further into the red. Peers PulteGroup (PHM 18.60, -1.35) and D.R. Horton (DHI 21.92, -1.37) were off 6.8% and 5.9% respectively. Elsewhere among discretionary shares, Office Depot (ODP 4.18, -0.84) andOfficeMax (OMX 12.09, -0.91) announced the completion of their stock-for-stock merger. Competitor Staples (SPLS 13.60, -1.05) fell 7.2% on the news. As a result of today's selling, six of 10 S&P 500 sectors lost over 1.0%. Energy and materials were the weakest performers in early trade, and continued lower during the afternoon. The energy sector saw some pressure from crude oil, which fell 2.4% and settled just under $95.00. Elsewhere, materials underperformed as industrial and precious metals displayed notable weakness for the second consecutive session. In addition, chemical producer CF Industries (CF 207.07, -11.46) fell 5.2% after missing on the top line. The tech space was another notable laggard. The largest sector component, Apple(AAPL 448.85, -11.14) lost 2.4% after reports indicated Foxconn, which assembles Apple products, has instituted a hiring freeze. However, the initial report was followed by stories suggesting the hiring freeze may not be related to changes in demand for Apple products. Instead, Foxconn could be making adjustments to better suit other companies it conducts business with. The first half of the session saw out performance from defensively-oriented consumer staples, telecoms, and utilities. Though these sectors succumbed to broad pressure in afternoon trade, they settled with slimmer losses than the broader market. Today's sell-off stirred up some demand for downside protection. This was reflected by the CBOE Volatility Index (VIX 14.62, +2.31), which surged over 15.0%. In the futures market, VIX contracts saw buying interest as well with the largest moves apparent in front-month contracts. Volume was well above average today as 816 million shares changed hands on the floor of the New York Stock Exchange. Taking a final look at the day's S&P 500 sector alignment, materials (-2.8%), energy (-1.8%), consumer discretionary (-1.6%), and technology (-1.5%) stocks were among the biggest laggards. Meanwhile, consumer staples (-0.1%), telecoms (-0.2%), and utilities (-0.2%) withstood the brunt of the selling. Looking back at today's economic data, January housing starts were reported at an annualized rate of 890,000 units, which fell short of the 914,000 expected by the Briefing.com consensus. However, the prior month's reading saw a substantial upward revision. Additionally, building permits beat expectations and rose to 925,000. This report is seen as a leading indicator suggesting demand for new homes remains intact. Tomorrow's economic data will be plentiful. At 8:30 ET, weekly initial and continuing claims, January CPI, and core CPI will all be released. Meanwhile, January existing home sales, leading indicators, and February Philadelphia Fed Survey will all be reported at 10:00 ET. ..NYSE Adv/Dec 715/2327. ..NASDAQ Adv/Dec 546/1963.

After Hours 18:49 ET PEGA +18.6%, MKTG +9.0%, AWAY +8.8%, PAY -32.6%, RBCN -14.4%, ACHN -7.4% following earnings/guidance : The S&P 500 settled lower by 1.2% after spending the entire session in negative territory. Other notable after hours movers on earnings: PEGA +18.6%, MKTG +9.0%, AWAY +8.8%, SNPS +4.9%, JOBS +4.5%, HURN +2.7%, TRN +2.7%, UNTD +2.1%, OEH +1.7%, VRML +1.5%, FELE +1.4%, ACHC +1.4%, ETP +1.2%, AEL +1.1%, PAY -32.6%, RBCN -14.4%, ACHN -7.4%, TSLA -5.9%, SB -5.8%, WLT -5.8%, PPO -5.0%, SYNC -4.6%, SAM -2.3%, CROX -2.3%, CAKE -1.8%, FLR -1.3%, WPZ -1.1%, WIRE -0.5% Today after the close the following companies reported earnings: LHO, HLX, WCN, ARII, CAKE, CLW, CROX, FR, IDCC, KBR, SYNC, TRN, WIRE, AUY, FST, XCO, DENN, HURN, MDAS, PPO, STR, BALT, DRCO, GNK, HT, NEWP, PVA, SM, WMB, WPZ, AWAY, EQY, FLR, MANT, SAM, TTS, UNTD, AEL, DEPO, FELE, MKTG, TSLA, WLT, CNK, CW, GDP, KAR, QLTY, RBCN, WAGE, CXO, ETE, ETP, HR, LOCK, MHLD, PAAS, RGP, RP, STAG, SXL, PEGA, IAG, SB, SZYM, JACK, SNPS, HEI Futures are mixed after hours: S&P 500 futures are -2.16 from fair value of 1509.56 and Nasdaq100 futures are -2.55 from fair value of 2739.55. Tomorrow morning before the open two economic reports are scheduled to be released: 1) Initial Claims (Consensus 358k) and Continuing Claims (Consensus 3150k), and 2) CPI (Consensus 0.1%) and Core CPI (Consensus 0.2%). Tomorrow before the open the following companies are scheduled to report earnings: HST, SWY, DFRG, LTM, VAC, JAKK, IART, CMS, CWEI, FAF, IMAX, LBY, LINE, RS, SUI, VCI, VDSI, DAN, KDN, TASR, PCG, SPNC, ESV, HSNI, MDSO, PWR, TFX, CHK, DORM, HEP, IDA, IRC, PEG, PKD, PXP, SFY, SMA, WST, CCC, GEO, ICGE, AYR, CBR, CCOI, DNR, LXP, SCG, THS, FNP, CG, GTXI, THI, TK, TNK, ZEUS, BRC, WMT, HRL, PDCO, ZLC, TTC, SAFM

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Jason's Commentaries

The FOMC minutes sunk the market more than what I expected, causing the DOW to sink a 108 points. The market was flat at the start of the day as expected, until 2pm ET, when the FOMC minutes came out. Initially the market was holding on for a while but subsequently sold off before the closing bell. While in the internals, it was clearly bearish. VIX spiked up a 19.25%, closing at 14.68. While looking at the sectors, Materials were the main laggard, losing more than 2% yesterday. The other sectors... sunk more than 1% except for the defensive sectors. CAT sunk yesterday before the FOMC minutes after releasing sales results that sunk that stock, which provided lags for the DOW. On top of that, United Healthcare, UNH, also provided lags on the DOW as well.

Taking a look at the Treasuries... It was a clear bullish day for the Treasuries.. Now it seems that the market is rushing into bonds again. Perhaps the correction is coming? While on the technical note, DOW hit a resistance, and is now retracing.While on the commodities.. Oil, Gold and Silver are making tremendous move... to the downside. Oil crashed below $94 yesterday, Gold crashed more than a 500 points yesterday, and silver, losing a full dollar.

Before the market open, Asian market sunk as a result of a 100 points drop on the DOW. Now, the European market is starting with weakness coming from the Asian Market.

We are having quite a number of reports coming out today. It's gonna be hell of a day. If the reports come out lousy, we're definitely gonna see a wash out today. But if the reports provide some cushion, we're likely to see some sideways to down day.

Market Call: DOWN

Date: 21 Jan 2013