5 Nov 2014 AMC - Oil Companies held the market afloat as rumoured oil pipe burst in Saudi Arabia

5 Nov 2014 AMC - Oil Companies held the market afloat as rumoured oil pipe burst in Saudi Arabia

Market Summary 

European Markets Closing Prices

European markets are now closed; stock markets across Europe performed as follows:

·         UK's FTSE: + 1.3%

·         Germany's DAX: + 1.6%

·         France's CAC: + 1.9%

·         Spain's IBEX: + 1.2%

·         Portugal's PSI: + 1.8%

·         Italy's MIB Index: + 2.6%

·         Irish Ovrl Index: + 1.9%

·         Greece ASE General Index: + 1.6%

Before Market Opens 

S&P futures vs fair value: +12.40. Nasdaq futures vs fair value: +24.20.
The S&P 500 futures trade 12 points above fair value.

Markets fell across much of Asia. Bank of Japan Governor Haruhiko Kuroda once again reiterated the central bank's plan to continue easing until the 2.0% inflation target is reached. 

·         In economic data: 

o    China's HSBC Services PMI slipped to 52.9 from 53.5 (expected 53.9) 

o    Hong Kong's Manufacturing PMI fell to 47.7 from 49.8 

o    Japan's Average Cash Earnings increased 0.8% year-over-year (expected 0.9%; prior 0.9%) 

o    India's HSBC Services PMI declined to 50.0 from 51.6 

o    New Zealand's Employment Change came in at 0.8% (expected 0.6%; previous 0.4%) and the Unemployment Rate slipped to 5.4% from 5.6% 

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·         Japan's Nikkei climbed 0.4% to a seven-year high. Toyota Motor edged up 0.1% ahead of its quarterly report. 

·         Hong Kong's Hang Seng lost 0.6% after failing at the 50- and 100-day moving averages. Casino stocks remained under pressure with Sands China and Galaxy Entertainment falling 3.3% and 3.0%, respectively. 

·         China's Shanghai Composite lost 0.5%, slipping off 21-month highs as sellers took control for the first time in seven days. China Railway Group lost 4.4% as traders booked profits following a more than 20% jump in just two weeks. 

·         India's Sensex added 0.2%, ticking to a record high as traders returned to work following yesterday's holiday. Financials led with Axis Bank, State Bank of India, and ICICI Bank gaining between 1.6% and 2.9%. 

Major European indices trade higher across the board with Italy's MIB (+2.2%) pacing the advance. 

·         Participants received several data points: 

o    Eurozone Retail Sales fell 1.3% month-over-month (expected -0.8%; previous 0.9%) while the year-over-year reading rose 0.6% (expected 1.2%; prior 1.9%). Separately, Services PMI ticked down to 52.3 from 52.4 (consensus 52.4) 

o    Germany's Services PMI slipped to 54.4 from 54.8 (expected 54.8) 

o    Great Britain's Services PMI fell to 56.2 from 58.7 (consensus 58.5) 

o    French Services PMI improved to 48.3 from 48.1 (expected 48.1) 

o    Italy's Services PMI rose to 50.8 from 48.8 (forecast 49.2) 

o    Spain's Services PMI ticked up to 55.9 from 55.8 (consensus 56.0) 

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·         Great Britain's FTSE is higher by 1.2% with retailers in the lead. Associated British Foods, Marks & Spencer Group, and WM Morrison Supermarkets are up between 3.9% and 8.9%. Miners lag with Fresnillo and Randgold Resources down 2.5% and 3.0%, respectively. 

·         In France, the CAC trades up 1.6% with all 40 names in the green. Consumer stocks Carrefour and L'Oreal are among the leaders with gains close to 2.5% apiece. 

·         Germany's DAX has jumped 1.7%. Deutsche Lufthansa leads with a gain of 3.0% while exporters Daimler and BMW hold respective gains of 1.7% and 1.3%. 

·         Italy's MIB is the top performer, up 2.2%, amid strength in financials. BMPS, UBI Banca, and Unicredit are up between 3.0% and 6.3%.

U.S. Equities

·         Futures point to solid gains at the open with the Dow and S&P 500 threatening record highs

·         Sweeping gains in the midterm election has propelled the republicans to complete control in Congress

·         The VIX (14.89) continues to test support

·         MBA Mortgage Index (-2.6% actual)

·         ADP Employment Change (230K actual v. 235K expected)

o    S&P Futures +13 @ 2018

o    Dow Futures +99 @ 17404

o    Nasdaq Futures +29 @ 4173

Asia

·         Markets fell across much of Asia

·         Bank of Japan Governor Kuroda reiterated the central bank will do everything in its power to hit its 2% inflation target in about two years

·         China's HSBC Services PMI slipped to 52.9 (53.5 previous)

·         Bank of Thailand kept its key rate unchanged at 2.00%, as expected

·         Japan's average cash earnings (0.8% YoY actual v. 0.9% YoY expected) were light

·         India's Services PMI eased to 50.0 (51.6 previous)

·         Japan's Nikkei (+0.4%) climbed to a seven-year high

·         Hong Kong's Hang Seng (-0.6%) failed at the 50 and 100 dma

·         China's Shanghai Composite (-0.5%) slipped off 21-month highs as sellers took control for the first time in seven days

·         India's Sensex (+0.2%) ticked to a record high as traders returned to work following holiday

·         Australia's ASX (UNCH) held near two-month highs

Market Internals

Market Internals -Technical-
The Dow closed up 101 (+0.58%) at 17485, the S&P 500 closed up 11 (+0.57%) at 2024, and the Nasdaq closed down 3 (-0.06%) at 4621. Action came on near average volume (NYSE 777 mln vs. avg. of 766; NASDAQ 1839 mln vs. avg. of 1833), with advancers outpacing decliners (NYSE 1855/1296, NASDAQ 1427/1297) and new highs outpacing new lows(NYSE 250/70, NASDAQ 129/58).

Relative Strength: 
Oil and Gas Exploration-XOP +2.8%, Oil Services-OIH +2.8%, Utilities-XLU +2.26%, Oil-USO +2.22%, Energy-XLE +1.76%, Greece-GREK +1.55%, Canada-EWC +1.34%, Italy-EWI +1.12%, United Kingdom-EWU +0.8%, Switzerland-EWL +0.78%.

Relative Weakness: 
Junior Gold Miners-GDXJ -7.34%, Silver Miners-SIL -5.18%, Biotechnology-XBI -2.62%, Turkey-TUR -2.32%, Copper Miners-COPX -1.72%, Biotechnology-IBB -1.64%, Australian Dollar-FXA -1.61%, South Korea-EWY -1.59%, Austria-EWO -1.55%, South Africa-EZA -1.44%.

Leaders and Laggards

Technical Updates

Briefing's Commentaries

Closing Market Summary: S&P 500 Marks Record High With Help From Energy
The stock market registered a midweek gain with the S&P 500 climbing 0.6% to a fresh record high at 2,023.57. The benchmark index maintained a ten-point range while the Nasdaq Composite (-0.1%) spent the bulk of the day near its flat line.

Equities climbed at the start after yesterday's midterm elections in the U.S. altered the balance of power in Washington. The GOP picked up seven Senate seats to claim a 52-seat majority while also adding ten seats to their majority in the House of Representatives.

In addition to giving a small overnight boost to index futures, the news helped the Dollar Index (87.45, +0.47) climb to a new multi-year high at the expense of the yen (-105 pips) and the euro (-60 pips).

Strikingly, the dollar strength did not get in the way of a rally in crude oil. The energy component surged 2.0% to $78.73/bbl with an intraday boost following reports of a diesel pipeline explosion in Saudi Arabia. However, follow-up headlines indicated the pipeline did not explode, but caught fire during maintenance work.

The spike in oil served as a supportive factor for the energy sector (+1.7%), which outperformed from the start of the session. Better than expected results from EOG Resources (EOG 96.10, +5.82) also factored into the strength, sending the stock higher by 6.5%.

Meanwhile, the remaining cyclical groups were not nearly as strong. The materials sector (+0.9%) outperformed while financials (+0.6%) and industrials (+0.6%) caught up to the S&P 500 during the final hour of the session. For its part, technology (+0.3%) was limited to a small gain as large cap names like Facebook (FB 74.83, -0.93),Google (GOOGL 555.95, -8.24), and IBM (IBM 161.82, -0.83) weighed. Intel (INTC 33.76, -0.55) also lagged, falling 1.6%, but the broader PHLX Semiconductor Index gained 0.9%.

Even though chipmakers displayed strength, that was not enough to keep the Nasdaq out of negative territory. Biotechnology pressured the index and the group's weakness caused the health care sector (-0.2%) to finish in the red. The iShares Nasdaq Biotechnology ETF (IBB 288.54, -4.80) settled lower by 1.6%.

Elsewhere among countercyclical sectors, consumer staples (+0.7%) and utilities (+2.3%) displayed strength while the telecom services sector (+0.2%) ended little changed. Consumer staples were underpinned by better than expected earnings from Mondelez (MDLZ 37.15, +2.12) while utilities rallied with help from Duke Energy (DUK 83.50, +1.27). The stock gained 1.5% despite missing earnings and revenue estimates.

Treasuries spent the bulk of the session in the red, but returned to their flat lines by the end of the day. The 10-yr yield ended at 2.34%.

Participation was ahead of average with more than 770 million shares changing hands at the NYSE floor.

Economic data included ADP Employment, ISM Services, and the MBA Mortgage Index: 

·         The ADP National Employment Report revealed that employment in the nonfarm private business sector rose 230K in October while the Briefing.com consensus expected an increase of 220K 

o    The September reading was revised up to 225,000 from 213,000 

·         The ISM Services Index dropped to 57.1 in October from 58.6 while the Briefing.com consensus expected a decline to 58.0 

o    Even though the services sector data softened more than expected, the index remains at an elevated position and in-line with expansionary trends 

·         The weekly MBA Mortgage Index fell 2.6% to follow last week's 6.6% drop 

Tomorrow, the Challenger Job Cuts report for October will be released at 7:30 ET while weekly Initial Claims (Briefing.com consensus 285K) and Q3 Productivity/Unit Labor Costs data will cross the wires at 8:30 ET. 

·         Nasdaq Composite +10.6% YTD 

·         S&P 500 +9.5% YTD 

·         Dow Jones Industrial Average +5.5% YTD 

·         Russell 2000 +0.3% YTD

Commodities

Closing Commodities: Crude Gains 2%, Metals Decline

·         WTI crude oil rallied this morning, following speculation that a pipeline exploded in Saudi Arabia and also following the weekly EIA storage data.

·         Dec crude rose as high as $79.35/barrel, but this didn't last very long. It quickly fell back below $78/barrel, but then went into a slow climb in afternoon trading

·         At the end of today's session, Dec crude rose +2% to $78.73/barrel

·         Nat gas was in the black all day and ended up 6.5 cents to $4.194/MMBtu

·         Gold, silver and copper traded in the red all day...

o    Dec gold lost 1.9% at $1145.20/oz, Dec silver lost -3.2% at $15.45/oz, while Dec copper fell 0.3% at $3.09/lb

Metals price action

  Gold fell $22.50 (-1.9%) to $1145.20/oz

·         Gold's move lower came in overnight trading, notching in a LoD of 1137.1 about an hour before the pit session opened. Futures have trended higher from there, rising about 8 points higher into settlement.

  Silver fell 5.08 cents (-3.2%) to $15.445/oz

·         As with gold, most of silvers' move lower came in the overnight session, eventually reaching a LoD of $15.12, also about an hour before the pit session opened. Since then, futures have slowly trended higher but are still well below overnight highs.

  Copper fell 1 cent (-0.3%) to $3.085

Agricultural price action

·         Corn rose 5.25 cents (+1.4%) to $3.6975/bushel

·         Wheat fell 5.5 cents (-1%) to $5.25/bushel

·         Soybeans rose 10.50 cents (+1%) to $10.2025/bushel

·         Ethanol rose 9.5 cents (+5.4%) to $1.85/gallon

·         Sugar #11 fell 1% to 15.53 cent/lb

 Energy price action

  Crude oil rose $1.54 (+2%) to $78.73/barrel

·         The primary driver behind crude's big gains was EIA data that showed crude oil inventories had a build of 0.46 mln vs consensus for a build of 2.2 mln. Futures started trending higher in early morning trading, but the bulk of the move came as the EIA inv data was released, touching a HoD of 79.35 before fading lower; futures are now ~60 cents of that peak.  

  Natural gas rose 6.5 cents (+XXX%) to $4.194/MMBtu

·         Natural gas peaked at $4.315 in GLOBEX trading, about an hour before the pit session opened. After moving back to its LoD just below $4.15, futures have remained in a range between 4.16-4.21.

  Heating oil was nearly flat, down 0.1% to $2.44/gallon

  RBOB rose ~1 cent (+0.45%) to $2.087/gallon



Treasuries

Treasuries Finish Sleepy Session Little Changed: 10Y: -02/32..2.344%..USD/JPY: 114.71..EUR/USD: 1.2480

·         Treasuries ended a sleepy session little changed. Click here to see an intraday yields chart.

·         Yields across the complex were limited to a 2bp range throughout U.S. trade. 

·         The complex saw steady selling into this morning's strong ADP Employment (230K actual v. 220K expected) reading and put in its lows following the report. 

·         Maturities rallied to their best levels of U.S. trade as ISM Services (57.1 actual v. 58.0 expected) missed estimates and then spent the remainder of the session chopping around in a tight range. 

·         Action is likely to remain sleepy into Friday's nonfarm payroll report.

·         Up front, the 2Y ticked up +0.8bps to 0.522%. Action continues to press resistance at the level that dated back to the beginning of September. 

·         In the belly, the 5Y finished flat @ 1.634%. Resistance in the 1.650% region remains in focus as the 50, 100, and 200 dma lurk in the vicinity. 

·         The 10Y edged up +0.8bps to 2.350%. Current levels will be watched closely into Friday's jobs report. 

·         Slight underperformance at the long end caused the 30Y to add +1.2bps to 3.065%. The yield on the long bond has spent the last two weeks in a tight range between 3.00% and 3.10%. 

·         The quiet session caused the 2-10-yr spread to hold @ 183bps. 

·         Precious metals remained under pressure as gold fell -$23 to $1145 and silver slid -$0.54 to $15.41.

·         Data: Challenger Job Cuts (7:30), initial and continuing claims, productivity-prel., and unit labor costs (8:30).

·         Fed Speak: Chicago's Evans makes opening remarks at the "The New International Financial System: Analyzing the Cumulative Impact of Regulatory Reform" conference (10:40) before Fed Governor Powell speaks (TBA); and Cleveland's Mester discusses "Federal Reserve Communications and Forward Guidance" (19:05).

On other news.... 

Retail October Same Store Sales Preview—all eyes on guidance
A handful of retailers report October sales tomorrow Thursday November 6 before the open (GPS tomorrow after the close; RAD / WAG already reported October sales).

The October retail period will include the four weeks ending Saturday November 1 and is the final month of the retail fiscal third quarter. Catalysts included Columbus Day and Halloween (incrementally positive impact expected from Friday vs Thursday last year). Overall the promotional activity, lower gas prices and increased consumer confidence are expected to help sales during the month. ICSC/Goldman expects October sales +3.5-4.5%, Redbook data suggests October sales +4.0% (slightly below its +4.2% target).

With the close of the retail fiscal third quarter, the primary focus will be on updated EPS guidance and prelim Q3 sales... Several names that do not report comps may still update quarterly expectations (AEO / ARO / ANF updated guidance October last year). A handful of retailers have already provided updated expectations for investor/analyst conferences.

·         Recent Updates/Guidance: New York & Co (NWY -17%) is under pressure today after issuing downside Q3 sales/comps guidance. Co also announced new COO and retained retail consulting firm to identify improvements, efficiencies, and cost savings. Zulily (ZU -22%) is making new post-IPO lows following its Q3 results/guidance... L Brands (LB) traded higher yesterday after raising Q3 EPS guidance and reaffirming October comparable expectations +LSD. Upside LB outlook was overshadowed by Michael Kors (KORS -8% yesterday) disappointing comps/guidance and despite beating Q2 estimates on top and bottom lines. 

·         Last week Kohl's (KSS -7.5%) weighed on dept store names along with dampening October optimism when it updated guidance for its Investor Day. KSS Q3 comps guidance for 1.4% decline reflects softer October sales than the balance of the quarter. JCPenney (JCP) was under considerable pressure last month following its Analyst Day update, which also includedlowered Q3 comps forecast.

October Street expectations: October commentary reflects overall cautious tone. Janney expects October comps to be below expectations--checks showed deceleration, particularly post Columbus Day. Despite October's clearance nature, firm is concerned with an increase in deeper y/y promos. While this is a sequential improvement from 1H14, firm believes with markedly cleaner inventories, there was an expectation for greater margin improvement for 3Q14. Mizhuo reiterates cautious stance as many retailers resorted to promotions to preserve market share and move inventory. Firm expects the group to wobble through Nov until Black Friday and then for a lull until the weekend before Christmas for last minute gifts. The firm believes the post BTS traffic lulls witnessed in 2H of Sept carried into Oct, despite lower gas prices and improving unemployment trends. Oppenheimer discussed continuation in choppy trends—URBN,  CRI, SHOO, JCP, WMT, KSS all recently called out trends deteriorating late Fall. While inventories improved into 3Q14, the firm thinks sales coming in largely below plan, driving higher promotional stance for most retailers... Topeka and FBR were more optimistic -- Topeka thinks leaner inventories helped tame promotional frenzy. The firm said improving consumer confidence, falling unemployment and lower gas prices should be positives for shoppers, but they remain entrenched in a stop-and-start spending mode, with a pronounced lull in mid-October and warm temps not helping spur sales of cold weather goods.  FBR previewed the holidays—believes challenges remain, but notes potential upside on margin stabilization, lower inventories, and gas prices.

Looking Back: August B2S momentum and easy comparisons boosted sales results as expected -- but the monthly results are failing to impress investors. Heavyweight Gap's (GPS -12.5%) disappointing sales/margins/executive changes was leading the group lower. The retail sector closed sharply lower along with the very weak broader market following September results. The SPDR Retail (XRT) was -2.0% on the day, Consumer Dis Spdr (XLY) -2.3% vs S&P500 index (SPX) -2.1%.

Retailers that beat September Same-Store Sales estimates:

·         Zumiez Inc (ZUMZ) reported Sept comps of 6.6% vs 2.7% consensus -- stock opened 2.7% higher and ended the day +5.9%. 

·         L Brands (LB) reported comps of 6% vs 3% consensus. The stock opened modestly higher and was one of the few retailers hanging in positive territory until afternoon trade—ended down 0.6%.

·         Cato (CATO) reported Sept comps of 5% vs 2.5% consensus and sees Q3 EPS at higher end of prior guidance (still below single analyst estimate). The stock opened flat and closed ~2% lower. 

·         Stein Mart (SMRT) reported Sept comps of 4.9% vs 2.7% consensus (does not provide earnings guidance) . The stock was down nearly 4% the following day. 

·         Buckle (BKE) reported Sept comps of 2.2% vs 2% consensus (does not provide EPS guidance). The stock was down 1.4% the following day (relatively modest decline). 

·         Drugstore names Rite Aid (RAD) and Walgreen's (WAG)  reported upside comp. RAD reported Sept comps of 5.1% vs 3.2% consensus -- stock opened 2.5% higher and ended the day up nearly 4%. WAG reported Sept comps of 7.9% vs 6.1% consensus -- stock was up  ~1.7% the following day.

Retailers that missed September Same-Store Sales estimates: 

·         PriceSmart (PSMT) reported Sept comps of 0.7% vs 2.8% consensus (as usual no commentary). The stock was up  ~0.4% the following day. 

·         Costco (COST) reported comps with upside earnings the day before most retailers. Sept comps were +4% vs 5.6% consensus. The stock opened 2.3% higher and closed the day up nearly 3%. 

·         Gap Inc (GPS) reported Sept early (along with CEO news)--comps were flat vs +1.2% consensus. Co expects Q4 gross margins to decline y/y. Several analysts downgraded GPS following news/sales including: Telsey, Sterne Agee, Wells Fargo, Janney.  The stock opened sharply lower ( ~11%) and closed near that level. 

·         Fred's (FRED) reported Sept comps of 0.2% vs 0.6% consensus. The stock opened modestly lower and closed down 6%.

Going forward: Retailers face the critical holiday season. The November period will be four weeks ending Saturday November 29 and include Thanksgiving and Veterans Day (not Hanukkah like last year). Redbook preliminary target for November is for +4.5%. 



Currencies

Dollar Continues Higher: 10Y: -04/32..2.347%..USD/JPY: 114.65..EUR/USD: 1.2483

·         The Dollar Index holds firm just off session highs as a lackluster trade drifts towards the close. Click here to see a daily Dollar Index chart.

·         The Index rallied to 87.50 in early trade and has spent the entire U.S. session chopping around in the 80.40/80.60 area. 

·         EURUSD is -65 pips @ 1.2480 as trade contends with its lowest close in 27 months ahead of tomorrow's European Central Bank rate decision. A Reuters report out yesterday hinted at a growing rift between central bank heads from the region and ECB President Mario Draghi, and that issue is likely to be addressed during tomorrow's accompanying press conference. Of course, market participants continue to look for clues of a QE-style program from the region, but nothing is expected at this time. German factory orders will be released before the European Central Bank rate decision. 

·         GBPUSD is -25 pips @ 1.5980 after recovering most of its early losses. Sterling broke to a fresh one-year low following the disappointing Services PMI print, but managed to trim those losses early and even spend some time above the breakeven line before slipping back into negative territory. Britain's Halifax PMI, manufacturing production, and NIESR GDP estimate are sandwiched around tomorrow's Bank of England policy decision. 

·         USDCHF is +45 pips @ .9645 as action contends with its best close since July 2013. The pair saw little reaction to the hotter than expected Swiss CPI print as trade was instead driven by the weakness in the euro. 

·         USDJPY is +110 pips @ 114.70 as trade presses to a seven-year high. Overnight comments from Bank of Japan Governor Haruhiko Kuroda reiterated the central bank's objective of reaching 2% inflation in around two years, propelling the pair to levels last seen in November 2007. The minutes from the latest Bank of Japan meeting are due out tonight.

·         AUDUSD is -165 pips @ .8570 as action flushes to its lowest levels since July 2010. The hard currency came under pressure after China's HSBC Services PMI weakened, causing selling to set off a run of stops hovering near the lower bound of the .8650/.8850 range that had been in place for the past month. Australia's jobs report will cross the wires this evening. 

·         USDCAD is -10 pips @ 1.1400 after an early bid lifted trade to a fresh five-year high near 1.1465. Canada's building permits and Ivey PMI are likely to create volatility tomorrow.

Next Week In View




Economic Commentaries

Economic Summary: ADP Employment tops expectations
Economic Data Summary:

·         Weekly MBA Mortgage Applications -2.6% vs Briefing.com consensus of ; Last Week was -6.6%

·         October ADP Employment Change 230K vs Briefing.com consensus of 220K; September was revised to 225K from 213K

o    Goods-producing 48,000 

o    Service-providing 181,000

·         October ISM Services 57.1 vs Briefing.com consensus of 58.0; September was 58.6

Upcoming Economic Data:

·         October Challenger Job Cuts due out Thursday at 7:30 (Briefing.com consensus of ; September was -24.4%)

·         Weekly Initial Claims due out Thursday at 8:30 (Briefing.com consensus of 285K; Last Week was 287K)

·         Weekly Continuing Claims due out Thursday at 8:30 (Briefing.com consensus of 2.378 M ; Last Week was 2.384 M )

·         Third Quarter Productivity due out Thursday at 8:30 (Briefing.com consensus of 1.5%; Second Quarter was 2.3%)

·         Third Quarter Unit Labor Costs due out Thursday at 8:30 (Briefing.com consensus of 0.7%; Second Quarter was -0.1%)

Upcoming Fed/Treasury Events:

·         Chicago Fed President Charlie Evans (not a voting FOMC member, dovish) to speak tomorrow at 10:40 & 13:00

·         Fed Board member Jerome Powell (voting FOMC member) to speak tomorrow at 12:45

·         Cleveland Fed President Mester (voting FOMC member) to speak tomorrow at 19:05

Other International Events of Interest

·          China's HSBC Services PMI slipped to 52.9 (53.5 previous)

Jason's Commentaries

Oh well.... there's a few market moving factors on Wednesday... Firstly, the major mover is the gain in Oil and Gas industry which held the market up as there's speculation of a pipeline burst in Saudi Arabia. Perhaps the Saudis are pissed off at the drop in oil prices that they decided to burst their own pipeline to get a shock in the price. Secondly, Swiss is gonna hold a momerandum to have gold purchases which could drive gold prices up much higher. Lastly, ADP employment change recorded a 230k increase in private hiring compared to 214k estimated.

The market was a turbelent one last night. Dow and S&P500 was up but Nasdaq and Russell were down. That clearly shows that the broader market was in greater divergence. Most index movements were caused by a few key players like Visa and the oil companies. It seems to me that the market is unlikely to head higher. Volumes and internals were healthy. While we are waiting for the NFP and Yellen's speech, Thursday is likely to be sidelined.








Market Call: FLAT to downside

Date: 6 Nov 2014