Tuesday 16 August, 2011 - AMC
Dow Jones Index
11,405.93 -76.97 (-0.67%)
Range 11,292.63 - 11,488.01
52 week 9,936.62 - 12,876.00
Open 11,480.48
Vol. 187.80M
NASDAQ
2,523.45 -31.75 (-1.24%)
Range 2,494.55 - 2,546.74
52 week 2,099.29 - 2,887.75
Open 2,526.48
Vol. 2.01B
S&P 500
1,192.76 -11.73(-0.97%)
Range 1,180.53 - 1,204.22
52 week 1,039.70 - 1,370.58
Open 1,204.22
Vol. 871.87M
RUSELL
704.76 -13.87 (-1.93%)
Range 698.26 - 718.59
52 week 588.58 - 868.57
Open 711.27
Vol. 0.00
Tuesday 16 August, 2011 Economic Data
Tue Aug 16 | 8:30am | USD |
| Building Permits |  | 0.60M | 0.61M |
0.62M |  |
| 8:30am | USD |
| Housing Starts | | 0.60M | 0.60M |
0.61M | |
| 8:30am | USD |
| Import Prices m/m | | 0.3% | 0.0% |
-0.6% | |
| 9:15am | USD |
| Capacity Utilization Rate | | 77.5% | 77.0% |
76.9% | |
| 9:15am | USD |
| Industrial Production m/m | | 0.9% | 0.5% |
0.4% | |
Sectors Performance
Utilities sector been performing well for the past week. It's like a contrarian indicator of the market when there's fear, people buy into one of the safe bet utilities. Thus this sector tends to do well, will it continue to do well ?
Finance sector at the bottom of the table.
Check this economic model from sam stovall
Early Recession
This is where things start to go bad for the overall economy. Consumer expectations are at their worst, industrial production is falling, interest rates are at their highest[still at 0 to 0.25 % till mid 2013], and the yield curve is flat or even inverted.[curve been flattening especially the past 2 weeks] Historically, the following sectors have found favor during these rough times:
Services (near the beginning)
Utilities
Cyclicals and transports (near the end)
Read more: http://www.investopedia.com/articles/trading/05/020305.asp#ixzz1VH1y2Xwz
What move the market
- Germany and France officials offer proposals for eurozone common government, not immediate plans to address ongoing challenges
- GDP data from Germany and broader eurozone disappoint
- Fitch reaffirms AAA rating on US, and considers the outlook stable
- Housing starts and building permits slow more than expected in July
- Industrial production jumps more than expected in July
Read more: http://www.briefing.com/investor/markets/stock-market-update/#ixzz1VH5LRjmP
Treasury Yield
Notable Earnings
Wal-Mart 2nd-quarter net up 5.7% (7:25 am ET)
TEL AVIV (MarketWatch) -- Wal-Mart Stores Inc., (WMT: news, chart, profile) the world's largest retailer, reported fiscal second-quarter net income rose 5.7% on 5.4% higher net revenue and flat same-store sales. For the quarter ended July 31, net income reached $3.8 billion from $3.6 billion. Earnings per share were $1.09 against 97 cents. Special items cut a net 3 cents a share from the latest quarter's profit, Wal-Mart said in a Tuesday statement. Net sales rose 5.5% to $108.64 billion; adding in membership fees, net revenue rose 5.4% to $109.37 billion. A survey of analysts by FactSet Research produced consensus estimates of $1.08 a share of profit on $108.1 billion of revenue. Wal-Mart's U.S. comparable-store sales fell 0.9%. For the fiscal third quarter, Wal-Mart expects continuing operations to generate profit of 95 cents to $1 a share. In the year-earlier third period, WMT earned 95 cents, including a 5-cent tax benefit. FactSet's survey is looking for 97 cents a share. For the fiscal year, Wal-Mart expects to earn $4.41 to $4.51 a share. FactSet's survey is eyeing $4.46. (Adds outlook.) |
Home Depot net beats estimate; outlook raised(6:19 am ET)
TEL AVIV (MarketWatch) -- Home Depot Inc., (HD: news, chart, profile) the Atlanta home-improvement chain, reported fiscal-second-quarter net income rose 14% on 4.2% higher net sales and 4.3% higher comparable-store sales. For the quarter ended July 31, profit reached $1.36 billion from $1.19 billion in the year-earlier period. Earnings per share were 86 cents against 72 cents. Shares outstanding fell 5.2% to 1.58 billion. Sales rose to $20.23 billion from $19.41 billion. A survey of analysts by FactSet Research produced a consensus estimate of profit of 83 cents a share on revenue of $19.97 billion. The company raised its outlook for the year and now expects continuing operations to generate profit of $2.34 a share. FactSet's survey is looking for $2.30. |
|
Technical Updates
Wednesday 17 August, 2011 BMO
Wednesday 17 August, 2011 Economic Data
Wed Aug 17 |  8:30am | USD |
| PPI m/m | |
| 0.0% |
-0.4% | |
| 8:30am | USD |
| Core PPI m/m | |
| 0.2% |
0.3% | |
| 10:30am | USD |
| Crude Oil Inventories |  |
| -0.4M |
-5.2M | |
What Does Producer Price Index - PPI Mean?
A family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time. PPIs measure price change from the perspective of the seller.
Read more: http://www.investopedia.com/terms/p/ppi.asp#ixzz1VHI9Inzi
News
The leaders of France and Germany called Tuesday for greater economic discipline and unity among European nations but declined to take immediate financial measures seen by many investors as the only way to halt the continent's spiraling debt crisis.
Dell cuts guidance, showing industry uncertainty
Earnings
The blended earnings growth rate for the S&P 500 for 2Q 2011, combining actual numbers for companies that have reported, and estimates for companies yet to report slightly rose to 11.9% from 11.8% in the previous day. As of April 1st, the earnings growth rate was at 13.3%.
Of the 466 (93%) S&P 500 companies who have reported 2Q earnings, 71% beat estimates, 9% were in-line, and 20% were below estimates. The estimated earnings growth rate for the S&P 500 for 3Q 2011 is currently at 15.7%. (Data provided by Thomson Reuters)
Almanac
-No statistics
Summary
-I m still bearish on long term. Just saw an video from Walter Zimmermann, United-ICAP chief technical analyst saying we could possibly see S&P500 hit 570 !!! I think it might be bad but not that bad ouch, that half of current S&P level. According to him, we could be in a repeat of 2007 to 2009.
On technical, SPX seem to hit Fibonacci of 61.8% (slightly over but if you use body to body candle its exactly at 61.8%). Also there a resistance level at 1204
Plus my wall street bull drop off from my vision board this morning [everything happen for a reason ^_^]
Market Direction : Down
Accuracy : (11/16)
