25 Apr 2013 AMC

25 Apr 2013 AMC

Market Summary 

Market Internals

Leaders and Laggards

Technical Updates

Briefing's Commentaries 

Stock Market Update 16:10 ET Dow +24.50 at 14700.8, Nasdaq +20.33 at 3289.98, S&P +6.37 at 1585.16 :[BRIEFING.COM] Equities settled with modest gains as the S&P 500 climbed 0.4% while the Dow added 0.2%.  The S&P was cruising near its highs before a late afternoon headline from German Handelsblatt cited a confidential Bundesbank opinion paper, which strongly opposed the European Central Bank's implementation of Outright Monetary Transactions.  Until the news hit, quarterly earnings were in focus after more than 250 companies covered by Briefing.com reported their results between yesterday's closing bell and today's open.  The Dow underperformed the broader market as two of its largest components weighed.3M (MMM 104.88, -2.99) lost 2.8% after missing on earnings and revenue. In addition,Exxon Mobil (XOM 88.07, -1.36) shed 1.5% after the company posted a 12.3% year-over-year revenue decline.  The materials sector was a strong performer throughout the day as the SPDR Materials Select Sector ETF (XLB 39.46, +0.43) settled higher by 1.1%. Better-than-expected earnings from Cliffs Natural Resources (CLF 20.95, +2.73) supported other steelmakers as the Market Vectors Steel ETF (SLX 42.06, +0.55) settled higher by 1.3%.  In addition, miners also showed relative strength as precious metals rallied. Gold futures advanced 2.8% to $1462.80 per troy ounce while silver futures spiked 6.2% to $24.25 per troy ounce. Also of note, copper rose 2.8% to $3.247 per pound.  While the materials sector was the clear leader throughout the day, other cyclical groups outperformed as well.  Discretionary stocks were supported by retailers and homebuilders. The SPDR S&P Retail ETF (XRT 73.31, +1.17) added 1.6% while the SPDR S&P Homebuilders ETF(XHB 30.40, +0.42) rose 1.4% on better-than-expected earnings from Ryland Group(RYL 44.94, +3.24) and PulteGroup (PHM 20.79, +1.10). While both builders surpassed bottom-line expectations, revenues proved to be more of a mixed bag as Ryland was able to beat estimates while PulteGroup's top-line fell short of analyst expectations.  Technology stocks showed intraday strength, but the sector sold off into the close as cautious earnings and revenue guidance from Qualcomm (QCOM 62.44, -3.56) weighed. With most growth-oriented groups contributing to today's advance, defensively-geared sectors lagged behind the broader market. However, the telecom space bucked the trend after reports indicated Verizon Communications (VZ 53.22, +1.42) may be preparing a $100 billion bid to gain full control of Vodafone's (VOD 30.43, +0.84) stake in Verizon Wireless. However, speculation regarding Verizon's attempt to gain full control of Verizon Wireless has circulated before.  Today's economic news was limited to weekly claims data. The initial claims level fell to 339,000 for the week ending April 20 from an upwardly revised 355,000 (from 352,000) for the week ending April 13. The Briefing.com consensus expected the initial claims level to drop to 351,000.  After several weeks of volatility following seasonal adjustment problems associated with the Easter holiday period, the initial claims level has again returned to its previous trend. The Department of Labor announced that the period of large swings in the weekly claims level is ending.  Tomorrow, first-quarter advance GDP will be reported at 8:30 ET while the final April Michigan Sentiment Survey will be released at 9:55 ET. ..NYSE Adv/Dec 1950/1044. ..NASDAQ Adv/Dec 1538/913.

After Hours

17:55 ET SYNA +18.3%, LOGM +16.2%, CSTR +7.2%, PKI -13.9%, BIDU -8.2%, AMZN -3.4% following earnings/guidance :

Equities settled with modest gains as the S&P 500 climbed 0.4% while the Dow added 0.2%. 

Other notable movers on earnings/guidance: SYNA +18.3%, LOGM +16.2%, QLIK +13.6%, AMKR +10.1%, FSL +8.3%, INFA +7.8%, CSTR +7.2%, THRX +5.1%, WOOF +2.8%, IGT +2.6%, RSG +2.3%, NTGR +2.2%, N +2.2%, MDCA +2.1%, PKI -13.9%, ECHO -8.3%, BIDU -8.2%, MCRS -6.5%, ABAX -5.8%, KLAC -5.0%, EXPE -4.9%, EXPE -4.9%, HXM -4.3%, CPSI -4.1%, DECK -4.0%, CAMP -3.8%, AMZN -3.4%, CRUS -3.4%, AAN -3.2%, PRGN -2.8%, SBUX -2.7%, HBHC -2.4%, ALTR -2.1%, TEU -1.9%, VPRT -1.1%

Today after the close the following companies reported earnings: CAMP, IGT, TUES, ALTR, CGI, CRUS, DGII, FII, HBHC, IBKC, INDB, INFA, KLAC, MCRS, MSCC, MXIM, RMD, SBCF, SBUX, SCSC, SIVB, SYNA, VRSN, OLN, AMZN, DLB, FSL, WBSN, AMCC, ELY, SWKS, ABAX, CB, CPSI, CTCT, EMN, MCRL, MTX, N, NATI, PFG, PKI, PMCS, RGA, TLAB, TNAV, VPRT, VR, WYNN, AXS, BIDU, BSAC, LEG, SIMO, CALX, CERN, EXPE, CBG, CINF, SPSC, AAN, ATR, COLM, CSTR, ECHO, IMI, MOH, OFG, RSG, SSD, CLWR, NTGR, THRX, AEM, AMKR, IM, TCO, WRE, EHTH, GFIG, KEG, LOGM, NR, QLIK, WOOF, BJRI, CLUB, HLS, FR, HURN, KBR, BLDR, BMRN, CENX, FPO, HITT, INAP, MMSI, GB, RRC, SPN, DECK, DRC, MCRI, UHS, RSYS, GERN

Futures are higher after hours: S&P 500 futures are +1.32 from fair value of 1580.28 and Nasdaq100 futures are +0.01 from fair value of 2842.24.

Tomorrow morning before the open two economic report is scheduled to be released: 1) GDP-Adv. (Consensus 2.8%), and 2) Chain Deflator-Adv. (Consensus 1.6%).

Tomorrow before the open the following companies are scheduled to report earnings: WY, ACO, COV, IMGN, MOG.A, AHGP, ARLP, DHI, TYC, SAIA, ALV, AON, BPO, CVX, LYB, NOV, PFS, WETF, SPG, FLIR, LAZ, MPW, OFC, GT, TRP, ACCO, FSRV, ITRI, AIMC, FET, GNC, AEP, BKW, DLR, LPNT, VFC, VTR, DTE, B, GDI, HMSY, ABBV

Commodities

Treasuries

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Jason's Commentaries


Last night was definitely a very volatile night. The market started the day with a bullish bias all the way till 2pm until the market started tanking, wiping most of the gains out. It seems that the bullish momentum was coming off from the market. Volumes were strong at 746million shares traded on the NYSE. With the bulls still outpacing the bears. There were 2 major components of the Dow lagging the whole market. Firstly, Exxon Mobil and 3M, 2 of the heavier weighted stocks on the Dow performed badly. Verizon were being boosted by rumors that it is looking to increase its stakes in Vodafone and on top of that, the homebuilders were looking good, beating top and bottom line. I suppose the market was volatile solely due to earnings last night. While on the Technicals, we're having some sort of topping pattern after S&P almost touching it's all time high again before selling off at 2pm ET. Treasuries were bullish and we can see a major movement in the treasury market on the 5,10 and 30y bonds. 

As for the last Friday of the month, I reckon that we're likely to go flat to the downside. With the GDP numbers coming out lesser than expected, 2.5 vs 3.1% expected. And on top of that, last night, Amazon and Starbucks reported lackluster earnings, dragging down the market in the after hours.  

Market Call: Flat to Downside (>0.5% change)

Date: 26 Apr 2013