6 Feb 2013 AMC

6 Feb 2013

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:25 ET Dow +7.22 at 13986.52, Nasdaq -3.10 at 3168.48, S&P +0.83 at 1512.12 :[BRIEFING.COM] Equities ended little changed after spending the vast majority of today's session in the red. The major averages began the day on a cautious note as European indices retreated in anticipation of an update from Monte dei Paschi regarding the size of derivative-related losses suffered by the world's oldest bank. Recent reports have suggested the bank's losses will exceed the original estimate of EUR720 million. This caused selling of the Italian 10-yr as its yield climbed 13 basis points to 4.58%, its worst level since mid-December 2012. The S&P 500 staged a morning recovery with the help of Apple (AAPL 457.35, -0.49). The largest tech stock spiked off its lows after rumors suggested the company may raise its quarterly dividend. However, with little substance behind the speculation, Apple followed the jump with a steady slide back near its flat line. While tech shares displayed intraday strength, the discretionary sector hovered in the black throughout the session. Upbeat earnings from Polo Ralph Lauren (RL 174.63, +9.72) as well as Times Warner (TWX 52.01, +2.05) and Walt Disney (DIS 54.52, +0.23) supported the space. In addition, Chipotle Mexican Grill (CMG 322.46, +17.45) added 5.7% after reporting revenue in-line with its January 16 preannouncement. Elsewhere, the materials sector outperformed the broader market thanks to the relative strength among steel producers. Reliance Steel (RS 70.25, +5.56) surged 5.9% following an agreement to acquire all outstanding shares of Metals USA (MUSA 20.65, +2.35) for $20.65 per share. The purchase price represents a 12.8% premium to Metals USA's Tuesday closing price, and the total transaction value is estimated at $1.2 billion. Meanwhile, the broader MarketVectors Steel ETF (SLX 49.38, +0.74) added 1.5%. On the downside, the Dow Jones Transportation Average trailed behind the broader market. The bellwether complex shed 0.2% after CH Robinson (CHRW 60.50, -6.51) reported mixed earnings. The freight carrier fell 9.7%, and was the worst performer within the S&P 500. Relative strength among airlines prevented transportation stocks from registering further losses. Alaska Air (ALK 47.42, +0.56) and United Continental (UAL 25.32, +1.06) saw respective gains of 1.2% and 4.4%. This morning, Alaska Air reported an 11.8% increase in traffic on a 12.2% rise in capacity, as compared to January 2012. Today's trade was centered mostly around the unchanged line. Technology (-0.2%) and health care (-0.1%) sectors weighed on sentiment. Meanwhile, telecoms (+0.3%), utilities (+0.2%), materials (+0.2%), and consumer discretionary (+0.2%) shares outperformed. The CBOE Volatility Index (VIX 13.42, -0.30) spent the bulk of the day in the black, but the near-term volatility measure turned lower into the close. Volume was slightly below average as just over 680 million shares changed hands on the floor of the New York Stock Exchange. Economic data was limited to the weekly MBA Mortgage Index, which rose 3.4% to follow last week's 8.1% decline. Tomorrow, weekly initial and continuing claims as well as preliminary fourth quarter productivity and unit labor costs will all be reported at 8:30 ET. Finally, December consumer credit will be announced at 15:00 ET. Among notable earnings, Credit Suisse (CS 29.55, +0.22) and Sony (SNE 15.82, -0.01) are scheduled to report their results ahead of the opening bell. ..NYSE Adv/Dec 1767/1217. ..NASDAQ Adv/Dec 1335/1088.

After Hours 17:55 ET DV +11.8%, LF +5.6%, AKAM -16.4%, ADEP -9.5% following earnings/guidance : Equities ended little changed after spending the vast majority of today's session in the red. The major averages began the day on a cautious note as European indices retreated in anticipation of an update from Monte dei Paschi regarding the size of derivative-related losses suffered by the world's oldest bank. Recent reports have suggested the bank's losses will exceed the original estimate of EUR720 million. This caused selling of the Italian 10-yr as its yield climbed 13 basis points to 4.58%, its worst level since mid-December 2012. Other notable after hours movers on earnings: DV +11.8%, LF +5.6%, MPWR +5.5%, ZUMZ +5.2%, TRLG +4.7%, XIDE +4.4%, CBG +3.4%, GEOS +3.4%, EXP +2.7%, WGL +2.7%, AKAM -16.4%, ADEP -9.5%, IRBT -9.3%, PSMI -9.0%, GMCR -8.2%, OSUR -8.4%, TQNT -7.5%, ATML -4.1%, ARAY -3.9% Today after the close the following companies reported earnings:  CVA, CYS, PTP, IRBT, AIZ, AKAM, ARRS, BDN, EFX, IACI, ORLY, RE, SGMO, SRCL, TQNT, TYL, XXIA, CINF, DV, SPSC, EXP, FMC, RLD, CBG, FEIC, GPRE, QUIK, ALL, CNW, HOS, KEYW, PRE, PSMI, RRTS, SWM, TSO, V, ABCO, ATML, CEB, DRIV, FORM, LNC, MAA, MPWR, MTD, RNR, SWIR, WMS, YELP, AGII, ANDE, CBM, ENS, LF, PAA, PNG, SREV, TRLG, GCOM, NWSA, PL, TWO, VSAT, ARAY, ATO, GHDX, HIMX, OSUR, PRU, UHAL, ARX, MTRX, XIDE, NTES, SPB, WGL, GMCR, GIL, GEOS, ADEP, PDH Futures are lower after hours: S&P 500 futures are -1.00 from fair value of 1507.90 and Nasdaq100 futures are -1.04 from fair value of 2741.29. Tomorrow morning before the open three economic reports are scheduled to be released: 1) Initial Claims (Consensus 360k) and Continuing Claims (Consensus 3200k), 2) Productivity-Prel (Consensus -1.2%), and 3) Unit Labor Costs (Consensus 2.4%). Tomorrow before the open the following companies are scheduled to report earnings:  HLSS, HWAY, SNA, SIAL, BG, CCE, CLI, CS, FLIR, GPK, HOT, INGR, LAZ, MNI, NBL, NYT, ODFL, PACR, PMTI, PTEN, RTIX, S, SQNS, KKR, MPW, ARW, GLT, CI, EXC, GTIV , HPY, ONNN, PBH, SNE, SNI, TDC, TEVA, XYL, ALU, IT, NPO, OZM, ROLL, NNN, BR, IFF, MMYT, MSCI, TW, CTSH, AAP, BDC, MFC, MWW, PMFG, PMT, RSTI, THR, FLO, MMS, SBH, POST, SPH, GBDC

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Jason's Commentaries

Market was within expectation and moved sideways, not much market moving factors yesterday. The market was apparently lacking something to give them a direction. Thursday we're going to have some news coming out from Europe that might gyrate the market quite a bit. As for the internals, we're looking at some bullish internals with volumes trading up to 680m shares in the NYSE. Internals were all pointing at the bullish bias. However, we saw some bond rates going down which is causing some divergence in the market. Especially we're at a flat month, and at the high of the market right now, I rather be cautious and mild bearish in the near term now.

Market Call: FLAT to downside

Date: 6 Jan 2013