The Week In Review
8/10/12August 10, 2012
U.S. stocks began lower on Friday, denting weekly gains and the S&P 500 index's five-session winning streak. "We're just reacting to China data," Peter Boockvar, equity strategist at Miller Tabak, said of disappointing Chinese trade data. The Dow Jones Industrial Average fell 64 points to 13,100. The S&P 500 index shed 7 points to 1,395. The Nasdaq Composite lost 11 points to 3,007. A quiet day to end a quiet week. On the earnings front, JCPenney is jumping 6% even though earnings were not spectacular. The stock is still down 40% from the February highs. Nordstrom and Lions Gate are also higher on earnings. Monster Beverage is down 9% after receiving a subpoena for improper advertising and promotions of their soda beverages. In the tech space, Fusion-IO is jumping 29% on better than expected earnings. Rivals, Seagate and Western Digital are higher as well, but the rest of the tech sector is quiet. Nvidia is only modestly higher on earnings and an upgrade. Facebook is higher by 3% thanks to a director buying a million dollars' worth of stock although the company does have a lock up pending soon for other insiders to sell. Through the first hour the averages battled back as they have done all summer long. Following the first hour the averages remain in the red, but not far from the unchanged level. A quiet rainy morning. First one in a long time. In the afternoon more of the same. The averages slowly improved as stocks caught a bid. The technicals are looking better and better for the markets. In the last hour the averages moved into the green to finish out another good week. The Dow average ended up 42 points to 13,207. It rose 0.9% for the week. The S&P 500 gained 3 points to 1,405, up 1.1% for the week. The Nasdaq Composite rose 2 points to 3,020, rising 1.8% for the week.
August 9, 2012
U.S. stocks began Thursday near flat, with investors finding little motivation to move in either direction after extended gains. "Earnings season is for the most part behind us, and like the rest of America, you've got Congress on vacation, the European Central Bank is on vacation, and the Fed doesn't meet until September," said Art Hogan, equity strategist at Lazard Capital Markets. "We're finding reasons for a slow and steady grind higher, which is better than the alternative, which is a low-volume selloff." The Dow Jones Industrial Average lost 2 points to 13,173. The S&P 500 index dipped half a point to 1,401. The Nasdaq Composite rose 4 points to 3,016. On the earnings front more mixed data. Advance Auto, Briggs Stratton, Tim Hortons, and Kohls are all lower on earnings. Wendys, Cooper Tires, and Brinker are higher on earnings. In the tech space Google and Apple grind higher. Cisco Systems is jumping 3% on an upgrade ahead of earnings next week. OSI Systems is higher following earnings. Seagate and Western Digital are higher on upgrades. IBM seems to be having trouble with the $200 level. Through the first hour the averages battled back into the green similar to yesterday. The energy and material space continue to slowly improve. Oil company, Robbins & Myers is jumping 27% after agreeing to a buyout. Through the morning the averages moved sideways at the unchanged level. Not much volume. In the afternoon more of the same, a sideways move. I think all the traders are in the Hamptons. In the last hour the averages drifted a little lower. The Dow Jones Industrial Average fell 10 points to 13,165. The S&P 500 rose 58 cents to 1,402. The Nasdaq Composite added 7 points to 3,018.
August 8, 2012
U.S. stocks began lower on Wednesday, with investors sidelined after a three-session win streak. "It appears this week's three-day global stock market rally is running out of steam," emailed Fred Dickson, chief investment strategist at Davidson Cos. The Dow Jones Industrial Average fell 41 points to 13,127 with weakness in McDonalds following earnings this morning. The S&P 500 index shed 4 points to 1,396. The Nasdaq Composite lost 12 points to 3,003. The earnings are flooding in once again with a number of dogs and diamonds. Priceline and Orbitz Worldwide are lower by 15% or more following disappointing guidance. In the retail space, Ralph Polo is lower by 3% on earnings. Disney is unchanged on earnings while Fossil is lower by 2% even though it was upgraded. The stock has been on a rollercoaster ride the last several months. On the flip side, Dean Foods is higher by 34% on earnings. Macys is higher by 3% on earnings while SodaStream id up 2% on an upgrade. CVS Caremark is higher on an upgrade. The energy and material space has been perking up with this recent rally. AK Steel is higher by 8% on an upgrade. Alpha Natural Resources and Rio Tinto are higher by 2% on earnings. Huntington Ingalls is jumping 5% on earnings. Freeport McMoran keeps creeping higher after a long consolidation. In the tech space, Raxspace and Computer Science are jumping 13% on earnings. HP is higher by 3% after raising guidance. Google looks good, but Apple is modestly in the red. Through the first hour the averages fought to get back into the green. A resilient market once again. Through the morning the averages grinded higher. Not a lot of volume in the markets. In the afternoon more of the same with the averages hugging the flat-line. The transports are the weakest sector not confirming the recent rally. In the last hour, the averages limped into the close. The Dow Jones Industrial Average finished up 7 points at 13,175. The S&P 500 edged nearly a point higher to 1,402. The Nasdaq Composite fell 4 points to 3,011.
August 7, 2012
U.S. stocks started higher Tuesday, with the S&P 500 index surpassing 1,400 for the first time in three months, as quarterly earnings keep coming in better than expected. The Dow Jones Industrial Average added 54 points to 13,171. The S&P 500 index rose 6 points to 1,400. The Nasdaq Composite climbed 15 points to 3,005. A big part of the recent rally has to do with investor's optimism that central banks around the globe would move to bolster growth. On the earnings front, Chesapeake Energy is higher by 7% even though the company missed. The energy sector is coming back to life. CF Industries is modestly higher following earnings although the stock is way up this year. Agrium is jumping 2% on a downgrade. In the retail space, Fossil is jumping 30% on strong earnings even though the stock was clipped by 50% back in May on dismal earnings. Coach is also improving on a upgrade this morning after getting hit by 20% on earnings last week. Tyson Foods is modestly higher on earnings while CVS Caremark and Cablevision are unchanged on earnings. The financials look good. JP Morgan is jumping 4% breaking out of its' recent range. Goldman Sachs also looks good. Through the first hour the averages pushed higher with the Dow rising 80 points and the Nasdaq improving by 23 points. Apple and Google are in the red, but the rest of the sector looks good. NetApp is higher by 4% on an upgrade. NVidia is also higher on an upgrade. The medical space is under pressure this morning. Pfizer and Elan are lower on disappointing phase 3 results on an Alzheimer drug. The HMOs for once are trading higher. Through the morning the averages pulled back only to rally once again into the lunch hour. Healthcare and utilities are under pressure as it's a risk on day. In the afternoon the averages remained strong even as the healthcare, utilities, and consumer staples drifted lower. In the last hour similar to yesterday, the averages drifted off the highs into the close. The Dow Jones Industrial Average finished up 51 points at 13,168. The S&P 500 index rose 7 points to 1,401. The Nasdaq Composite advanced 25 points to 3,015.
August 6, 2012
U.S. stocks began higher Monday, extending the prior week's gains, on better-than-anticipated corporate earnings and as worry diminished about Europe's debt trouble. The Dow Jones Industrial Average rose 54 points to 13,151. The S&P 500 index climbed 5 points to 1,396. The Nasdaq Composite rose 11 points to 2,979. Thanks to more encouraging comments out of Europe and better than expected economic data out last Friday, investors are warming up to the markets. All the major sectors are trading higher this morning. The weakest sectors like materials and energy slowly climb higher. Kodiak Oil & Gas is higher by 2% on an upgrade. The big cap financials are performing well although Knight Trading is down 25% following their huge trade error last week. The good news Knight Trading will survive, but unfortunately the firm had to accept new investors diluting their stock significantly. On the earnings front the news is quiet. Tyson Foods is lower by 3% on disappointing earnings. Retail in general continues to hold up. Walmart and Walgreen are higher on upgrades. Sony is lower on a debt downgrade. Activision Blizzard is jumping 2% on a positive Barrons' article. Through the first hour the averages kept pushing higher with the Dow rising 70 points and the Nasdaq rising 20 points. The healthcare space is not really rallying with the broader market. Health Care REIT, INC is higher following earnings while HCA Corp is down 4% on earnings. The HMOs continue to come under pressure since the Supreme Court ruling on Obamacare. Through the morning and into the afternoon the averages remained strong not far from the highs of the day even as a few stocks have dropped into the red. In the last hour the selling picked up a little as the averages drifted lower. A quiet day overall. The Dow Jones Industrial Average finished up 21 points, or 0.2%, at 13,117, led by Bank of America and dragged off the highs by American Express. The S&P 500 rose 3 points to 1,394. The Nasdaq Composite rose 22 points to 2,989.