Daily Market Analysis - 08 October 2009
Posted on 10.08.09 9:39PM under Daily Market Analysis, Trading
WELCOME TO Q4 2009!!!!
Briefing.com - Wednesday October 07 2009 @ 16:36 ET AMC Daily Sector Wrap : Financials Help Market Shake Off Dollar’s Drag Leadership from the financial sector helped stocks log their third straight gain after they spent most of the session chopping along in negative territory amid a moderately stronger U.S. dollar. Though the greenback’s gains weighed on the stock market and many commodities, it didn’t deter gold from extending recent gains. Stocks spent most of the session trading listlessly as the Dollar Index recovered from losses in the past three sessions to advance 0.2% Wednesday. However, bank stocks emerged with strength after struggling to find direction in the early going. With banks finishing strong, the KBW Bank Index netted a 1.2% gain and the broader financial sector settled at session highs with a 1.0% gain. The energy sector was the next best performing sector. It finished 0.6% higher even though oil prices closed pit trade 1.7% lower at $69.66 per barrel. Oil prices were hampered by bearish gasoline inventory data, which overshadowed news of a 978,000 barrel draw in crude oil. The consensus had called for a build of 2 million barrels of crude. Though a stronger dollar likely added to oil’s woes this session, it didn’t derail gold from continuing its ascent. Gold futures closed at $1044.70 per ounce, up 0.5%, but had been as high as $1049.70 per ounce in overnight trade. Small-cap gold stocks and precious metals stocks of a lower quality benefited most from gold’s gains as momentum money trickled into the group. That helped the materials sector (+0.2%) offset general weakness among commodities-related stocks and basic materials stocks that stemmed from a 0.4% decline in the CRB Commodity Index. Monsanto (MON 74.33, -1.04) was also a drag on the materials sector. The company posted better-than-expected adjusted earnings of $0.02 per share, but reaffirmed downside guidance for fiscal 2010. Other earnings announcements were generally positive as Yum! Brands (YUM 34.37, -0.49), Costco (COST 59.00, +1.07), and Family Dollar (FDO 28.21, -0.27) each bested earnings expectations for the latest quarter. Leadership from the financial sector may have led the S&P 500 to a strong finish, but it couldn’t prevent the telecom sector from logging an outsized loss of 2.9%. Weakness among integrated telecom giants AT&T (T 26.18, -0.56) and Verizon (VZ 29.38, -0.31) kept the Dow from making a gain of its own. Separately, Treasuries made solid gains. The benchmark 10-year Note settled some 22 ticks higher, which pushed its yield back below 3.2%, following strong results from a $20 billion auction of 10-year Notes. |
Market Internals for Wednesday October 07 2009
Leading Sectors: Financials (+1.00%), Tech (+0.47%), Health Care (+0.25%), Consumer Staples (+0.34%), Consumer Discretionary (+0.08%), Energy (+0.62%), Materials (+0.22%)
Leading Industries: Diversified Metals & Mining +4.45%, Home Entertainment Software +4.06%, Auto Parts & Equipment +4.06%, Internet Software & Services +3.11%, Internet Retail +2.94%, Oil & Gas Equipment & Services +2.65%, Managed Health Care +2.58%, Drug Retail +2.52%, Specialized Consumer Services +2.40%, Aluminum +2.23%,
Lagging Sectors: Industrials (-0.28%), Telecom (-2.89%), Utilities (-0.18%)
Lagging Industries: Integrated Telecommunication Services -3.08%, Photographic Products -2.18%, Forest Products -2.16%, Fertilizers & Agricultural Chemicals -1.50%, Automotive Retail -1.42%, Construction Materials -1.26%, Home Improvement Retail -1.23%, Electrical Components & Equip -1.23%, Paper Products -1.21%, Wireless Telecommunication Services -1.12%
NYSE:
Lower than avg volume @ 1091 vs. 1229 avg
Advancers outpacing Decliners : 1567/1384
NASDAQ:
Lower than avg volume @ 2228 vs. 2276 avg
Decliners outpacing Advancers : 1300/1319
Other Market Moving Factors:
• Alcoa tops earnings estimates, PepsiCo, too
• U.S. dollar falters
• Weekly initial jobless claims not as bad as feared
• August Wholesale Inventory data due at 10:00 AM ET
Briefing.com - Wednesday October 07 2009 @ 18:45 ET AMC After-Hours Report : AA 5.6% Higher After Hours Following Earnings Leadership from the financial sector helped stocks log their third straight gain after they spent most of the session chopping along in negative territory amid a moderately stronger U.S. dollar. Though the greenback’s gains weighed on the stock market and many commodities, it didn’t deter gold from extending recent gains. After the close, Alcoa (AA) reported third quarter earnings of $0.04 per share, which was $0.13 better than the First Call consensus of a loss of $0.09. Revenue also came in above expectations. The company said, "In the second half of 2009, there are signs that key markets the company operates in are stabilizing. Due to low inventories at distributors and rising shipments, regional premiums are improving and global aluminum consumption is expected to increase 11% in the second half of 2009." The stock is trading ~5.6% higher after hours as a result of its earnings release, while close competitor Century Aluminum (CENX) jumped 50 cents (or ~5.2%) to ~$10.20 after hours due to AA’s results. Seven of the ten sectors were in positive territory, led by financials (+1.0%), energy (+0.62%) and tech (+0.5%). The telecom sector (-2.9%) was the worst performing sector by, with industrials (-0.3%) a distant second. Futures are higher after hours with S&P 500 futures 2.85 points above fair value of 1053.95 and Nasdaq 100 futures 3.53 points above fair value of 1708.97. Companies trading higher in after hours in reaction to earnings: AA +5.6%… Companies trading lower in after hours in reaction to news: SVNT -7.1% (announces a 4 mln share common stock offering pursuant to an effective shelf). Tomorrow morning, two economic reports are scheduled to be released at 8:30ET. First, initial claims figures, which have a consensus of 540K and second, continuing claims, which have a consensus of 6105K. Ahead of tomorrow morning’s opening bell, International Speedway (ISCA), Marriott (MAR) and PepsiCo (PEP) are scheduled to report earnings. |
U.S Markets - Thursday October 08 2009 - BMO
TECHNICAL UPDATE
DOW JONES INDUSTRIAL AVERAGE (DJIND: CBOT) 9,725.58, -5.67 (-0.06%)
NASDAQ COMPOSITE INDEX (COMB) (COMP.IDX: NASDAQ) 2,110.33, +6.76 (+0.32%)
S&P 500 INDEX (SPX: CBOE) 1,057.58, +2.86 (+0.27%)
__________________________________________
Current Markets
Asian Markets Thursday October 08 2009 @ Oct 8 9:16am:
HANG SENG 21,492.90 ( +251.31 +1.18% )
NIKKEI 225 9,832.47 ( +32.87 +0.34% )
KLSE 1,196.32 ( -5.75 -0.48% )
STI 2,648.86 ( -12.05 -0.45% )
Currencies Thursday October 08 2009 @ Oct 8 9:16am:
U.S. Dollar vs Euro ( +0.0072 +0.49% ) 1.4761
U.S. Dollar vs Yen ( -0.08 -0.09% ) 0.0113
U.S. Dollar vs UK £ ( +0.01 +0.62% ) 1.61
Treasury Yields : 
2 Year Note 0.88% +0.02 • 5 Year Note 2.17% 0.00
10 Year Note 3.17% -0.01 • 30 Year Note 3.97% -0.03
Gold (CMX ) December 09 ($US per Troy oz.) : 1057.00 ( +12.60)
Light Crude (NYM ) November 09 ($US per bbl.) : 69.57 ( -1.31)
Earnings Highlights for Thursday October 08 2009
ISCA , MAR , PEP , NUHC , TSCM
Events for Thursday October 08 2009
08:30 Initial Claims
08:30 Continuing Claims
10:00 Wholesale Inventories
___________________________________________
Summary
"Jobless lose lifeline as Senate stalls" : http://money.cnn.com/2009/10/08/news…ion=2009100806
"Gold’s record-breaking run continues" : http://money.cnn.com/2009/10/08/mark…ion=2009100807
"Jobless claims fall to 9-month low" : http://money.cnn.com/2009/10/08/news…ion=2009100808
Alcoa swings to surprise profit" : http://money.cnn.com/2009/10/07/news…ion=2009100718
"Stocks poised to roll up again" : http://money.cnn.com/2009/10/08/mark…ion=2009100808
Resistance levels @ 9,790 and 9,920
Support levels @ 9,700 and 9,660
Direction for Thursday October 08 2009; ∆ Up
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