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Leigh Baldwin & Co.

112 Albany Street, Cazenovia, NY 13035 | Phone: (315) 655-2964 Toll Free: 1-800-659-8044

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Day Traders Diary

10/12/12

Today's session got off to a quiet start. The major averages held near their opening levels until the preliminary October University of Michigan Consumer Sentiment Survey registered a reading of 83.1. The survey's best level since September 2007 lifted the major averages to their session highs. However, the exuberance was short-lived as the key indices promptly fell through the unchanged line, to their session lows. The afternoon was generally quiet as the S&P 500 hovered within points of the 1,428 level before settling at 1,428.59, with a loss of 0.3%. Note that today's session punctuated a down week, during which the S&P 500 lost 2.2%.

The financial sector was the biggest laggard of the day. Despite record earnings from two major names, the SPDR Financial Select Sector ETF (XLF 15.81, -0.22) shed 1.4%. JPMorgan Chase (JPM 41.62, -0.48) reported earnings of $1.40 per share against expectations of $1.21. Meanwhile, its revenues were reported at $25.15 billion which was ahead of the expected $24.27 billion. The stock traded higher in initial response to the earnings report, but it settled lower by 1.1%.

Wells Fargo (WFC 34.25, -0.93) slid 2.6% after reporting mixed earnings. WFC exceeded earnings expectations by one cent, while its revenues fell $200 million short of analyst estimates.

Other major financials also showed weakness. Bank of America (BAC 9.12, -0.22) and Morgan Stanley (MS 17.31, -0.55) slipped 2.4% and 3.1%, respectively.

Consumer staple stocks were the top performers of the session. Within the space, Dean Foods (DF 14.94, +0.29) added 2.0% after Stifel Nicolaus upgraded the stock to 'buy' from 'hold' with an $18 price target.

Cigarette stocks also showing strength among defensive staple stocks. Philip Morris (PM 91.70, +0.86) and Altria (MO 33.12, +0.41) saw respective gains of 1.0% and 1.3%.

Elsewhere in the space, Monster Beverage (MNST 57.08, +2.64) advanced 4.9% in a rebound from recent weakness.

The Dow Jones Transportation Average outperformed the broader market and settled higher by 0.9%. JB Hunt (JBHT 58.37, +3.58) is the top performer within the space. The freight carrier settled higher by 6.5% after its mixed earnings report showed a top line beat and a slight bottom line miss. Meanwhile, peer CH Robinson (CHRW 59.94, +1.04) added 1.8%. With most transportation stocks on the rise, Overseas Shipholding Group (OSG 5.08, -0.80) was a notable laggard as the shipping stock tumbled 13.6%.

AMD (AMD 2.74, -0.46) slumped 14.4% after the company lowered its third quarter revenue guidance below consensus. Peer Intel (INTC 21.48, -0.20) settled lower by 0.9% while the Market Vectors Semiconductor ETF (SMH 30.50, -0.10) slipped 0.3%.

Overall producer prices rose during September by 1.1%, which was hotter than the 0.8% increase that had been widely forecast. Core producer prices were unchanged which was lower than the Briefing.com consensus call of a 0.2% increase.

The September Treasury Budget showed a $75 billion surplus, which was in-line with expectations.

Next week, the earnings season enters full force as more than 230 companies are scheduled to report their third quarter results

All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.