Updated: 07-25-2014

The Market at 12:30PM ET
Dow: -128.21… | Nasdaq: -26.60… | S&P: -9.19…
NASDAQ Vol: 800.9 mln… Adv: 833… Dec: 1807…
NYSE Vol: 223.1 mln… Adv: 971… Dec: 1971…

Moving the Market

Disappointing earnings and/or guidance from Amazon.com (AMZN), Chubb (CB), KLA-Tencor (KLAC), Visa (V), and WellCare Health Plans (WCG) weigh on sentiment

Sector Watch
Strong: Materials, Telecom Services
Weak: Consumer Discretionary, Consumer Staples, Energy, Health Care, Technology

12:30PM ET
[BRIEFING.COM] Not much change in the major averages as they remain near their lows. The S&P 500, which notched its session low just before 11:30 ET has been able to retake about four points over the past hour with dip-buyers showing some reluctance to step in.

Given its current level, the benchmark index is on track to end the week unchanged. Elsewhere, the Nasdaq has shown relative strength this week (+0.3%), while the Dow and Russell 2000 hold respective weekly losses of 0.8% and 0.5%.

With regard to individual sectors, consumer discretionary and energy moved in opposite directions. The discretionary space holds a week-to-date decline of 1.0%, while the energy sector is higher by 0.9% since last week.
Dow: -128.21… | Nasdaq: -26.60… | S&P: -9.19…
NASDAQ Adv/Dec 833/1807. …NYSE Adv/Dec 971/1971.

12:00PM ET
[BRIEFING.COM] The S&P 500 trades lower by 0.5% with eight sectors showing losses. On the upside, materials (+0.2%) and telecom services (+0.3%) have held modest gains since the opening bell.

There were no noteworthy earnings reported in the materials sector today, but the group has drawn strength from mining shares. The Market Vectors Gold Miners ETF (GDX 26.50, +0.42) trades up 1.6%, while gold futures are higher by 0.6% at $1298.30/ozt.

Elsewhere, the telecom sector has been supported by heavyweights AT&T (T 35.56, +0.06) and Verizon (VZ 51.30, +0.26). The two names hold respective gains of 0.2% and 0.5%.
Dow: -134.80… | Nasdaq: -29.28… | S&P: -10.11…
NASDAQ Adv/Dec 793/1855. …NYSE Adv/Dec 913/2022.

11:25AM ET
[BRIEFING.COM] The major averages have slipped to new lows for the session with the S&P 500 widening its loss to 0.7%.

In our prior update we mentioned that the benchmark index was trying to climb off its opening low, but that effort lacked strength, resulting in another leg lower for the major averages. The consumer discretionary sector (-1.3%) remains at the bottom of the leaderboard, while the top-weighted sector-technology (-0.7%)-sports a decline comparable to the S&P 500.

However, the in-line performance of the sector masks the significant weakness among chipmakers. The PHLX Semiconductor Index is lower by 2.3% with 29 components in the red. Maxim Integrated (MXIM 29.00, -3.94) is the weakest performer, down 12.0% after missing earnings expectations and guiding lower.
Dow: -163.61… | Nasdaq: -41.09… | S&P: -13.35…
NASDAQ Adv/Dec 658/1949. …NYSE Adv/Dec 814/2097.

11:00AM ET
[BRIEFING.COM] The S&P 500 (-0.4%) has reclaimed about three points after notching a session low during the opening 15 minutes of the action, while the Dow Jones Industrial Average (-0.7%) remains not far from its worst level of the day.

So far, the price-weighted Dow has been unable to stage a rebound effort due to significant weakness in the top-weighted stock. Visa (V 212.16, -10.58) is lower by 4.8% following its disappointing guidance, while the second and third-largest components also hover in the red. IBM (IBM 195.13, -0.11) sits right below its flat line, while Goldman Sachs (GS 175.71, -0.55) holds a loss of 0.3%, which matches the decline in the financial sector.
Dow: -118.71… | Nasdaq: -24.24… | S&P: -7.14…
NASDAQ Adv/Dec 762/1783. …NYSE Adv/Dec 1034/1848.

10:35AM ET
[BRIEFING.COM]
  • WTI crude oil was modestly higher overnight and rose as high as $102.23/barrel.
  • However, oil began to sell off and slid to a new session low of $101.03/barrel and is currently -1% at $101.10/barrel.
  • Natural gas sold off as well this morning. Nat gas lost steam after rising as high as $3.86/MMBtu
  • Aug nat gas hit a new LoD of $3.77 in recent trade and is now -1.7% at $3.78/MMBtu
  • Gold and silver have been in positive territory today, but have lost steam in recent action.
  • Aug gold is currently +0.3% at $1294.80/oz, while Sept silver is +0.3% at $20.49/oz.
  • Sept copper sold off this morning and just hit a new LoD of $3.24 and is now -0.6% at $3.25/lb 
Dow: -106.41… | Nasdaq: -18.94… | S&P: -5.89…
NASDAQ Adv/Dec 763/1749. …NYSE Adv/Dec 982/1856.

10:00AM ET
[BRIEFING.COM] Stocks remain pressured with the S&P 500 trading lower by 0.3%. The discretionary sector has ticked up off its worst level of the day, but remains lower by 0.9% at this juncture.

Elsewhere, the industrial space (+0.1%) has joined materials (+0.5%) and telecom services (+0.6%) in the green thanks in part to the relative strength of transport stocks. The Dow Jones Transportation Average is higher by 0.2% with airlines showing broad strength. United Continental (UAL 47.48, +2.56) trades up 5.8%, while Delta Air Lines (DAL 38.69, +0.62) sports an advance of 1.6%.

Also of note, Treasuries have climbed to new highs, pushing the 10-yr yield lower by three basis points to 2.48%.
Dow: -103.61… | Nasdaq: -18.09… | S&P: -6.12…
NASDAQ Adv/Dec 663/1691. …NYSE Adv/Dec 940/1800.

09:45AM ET
[BRIEFING.COM] The major averages slumped out of the gate with the consumer discretionary sector (-1.0%) leading the slide due to an 11.1% loss in the shares of Amazon.com (AMZN 319.00, -39.61) after the retailer reported disappointing results for the quarter.

The discretionary space is a clear laggard, while other cyclical sectors like energy (-0.5%) and technology (-0.4%) also display notable losses. The energy sector trades in the red amid weakness in crude oil futures (-0.8% at $101.26/bbl), while the tech sector has been pressured by the likes of KLA-Tencor (KLAC 71.24, -1.78) and Visa (V 212.87, -9.87). The two hold respective losses of 2.6% and 4.1% after disappointing with their earnings (KLAC) or guidance (V).

On the upside, telecom services (+0.5%) and materials (+0.3%) sport slim gains.
Dow: -98.48… | Nasdaq: -24.49… | S&P: -6.84…
NASDAQ Adv/Dec 571/1675. …NYSE Adv/Dec 855/1848.

09:16AM ET
[BRIEFING.COM] S&P futures vs fair value: -5.50. Nasdaq futures vs fair value: -20.30. The stock market is on track for a modestly lower open with futures on the S&P 500 trading six points below fair value. Nasdaq futures, meanwhile, underperform (-20 pts v fair value) due to noteworthy pre-market weakness in the shares of Amazon.com (AMZN 317.98, -40.63) after the online retail giant missed bottom-line estimates and forecast a wider than expected operating loss for Q3.

Similar to Amazon.com, KLA-Tencor (KLAC 69.67, -3.35), Visa (V 214.77, -7.97), and WellCare Health Plans (WCG 61.00, -15.85) are also indicated to start notably lower in reaction to disappointing earnings and/or guidance.

On the economic front, the durable orders report for June surpassed estimates (+0.7% versus Briefing.com consensus 0.3%), but shipments of goods declined 1.0%, which will be a negative for Q2 GDP.

Treasuries are on their highs with the 10-yr yield off two basis points at 2.49%.

09:00AM ET
[BRIEFING.COM] S&P futures vs fair value: -4.30. Nasdaq futures vs fair value: -18.50. The S&P 500 futures trade four points below fair value.

The major Asian markets ended the week on a higher note.
  • In economic data: 
    • Japan's National CPI increased 3.6% year-over-year (previous 3.7%), while National Core CPI rose 3.3%, as expected. Separately, Tokyo CPI jumped 2.8% year-over-year (prior 3.0%) and Tokyo Core CPI climbed 2.8% (consensus 2.7%, prior 2.8%) 
    • South Korea's Consumer Confidence slipped to 105 from 107 
    • New Zealand's ANZ Business Confidence slipped to 39.7% from 42.8% 
    • Singapore's Industrial Production rose 0.4% year-over-year (expected 1.3%, previous -1.9%)
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  • Japan's Nikkei rose 1.1%, closing at a six-month high. Robotics maker Fanuc climbed 5.3% after providing a strong outlook. 
  • Hong Kong's Hang Seng added 0.3%, finishing at its best level since April 2011. Retail-related names were strong with Belle International and China Resources Enterprises tacking on 4.9% and 2.0%, respectively. 
  • China's Shanghai Composite added 1.0%, gaining for a fourth straight day and ending at levels last seen in the middle of April. Financials saw solid gains with Agricultural Bank of China up 2.1% and Industrial & Commercial Bank of China higher by 1.2%. 
Major European indices trade mostly lower, while Spain's IBEX (+0.5%) outperforms. In Ukraine, Volodymyr Hroisman was appointed acting prime minister following Arseniy Yatseniuk's resignation. Mr. Hroisman was previously the Deputy Prime Minister
  • Participants received several data points: 
    • Eurozone M3 Money Supply increased 1.5% year-over-year (expected 1.1%, previous 1.0%), but Private Loans fell 1.7% year-over-year (consensus -1.8%, prior -2.0%) 
    • Germany's Ifo Business Climate Index fell to 108.0 from 109.7 (expected 109.4) as Current Assessment slipped to 112.9 from 114.8 (consensus 114.5) and Business Expectations ticked down to 103.4 from 104.8 (expected 104.5). Separately, GfK Consumer Climate ticked up to 9.0 from 8.9 (expected 8.9) 
    • Great Britain's GDP rose 0.8% quarter-over-quarter, while the year-over-year reading increased 3.1%. Separately, Index of Services rose 1.0%. All three figures matched expectations 
    • Italy's Wage Inflation came in at 0.1% month-over-month (previous 0.1%) 
    • Spain's PPI rose 0.4% year-over-year (previous -0.4%) 
------
  • Great Britain's FTSE is lower by 0.1% with British Sky Broadcasting leading the slide. The stock is lower by 5.0% after the company announced the acquisitions of Sky Italia and Sky Deutschland. Royal Bank of Scotland outperforms with a gain of 13.7% after reporting upbeat earnings. 
  • Germany's DAX holds a loss of 0.6% with 20 of 30 components in the red. Health care names lag with Bayer and Henkel down 1.0% and 1.5%, respectively. On the upside, Commerzbank is higher by 2.5%. 
  • In France, the CAC is lower by 0.9%. Consumer name LVMH Moet Hennessy has tumbled 6.7% in reaction to disappointing results. Financials outperform with BNP Paribas and Credit Agricole up 0.9% and 1.6%, respectively. 
  • Spain's IBEX outperforms with a gain of 0.5% amid strength in bank shares. Banco Popular, CaixaBank, and Banco Santander are up between 0.8% and 3.3%.

08:32AM ET
[BRIEFING.COM] S&P futures vs fair value: -4.40. Nasdaq futures vs fair value: -15.80. The S&P 500 futures trade four points below fair value.

June durable goods orders rose 0.7%, which was better than the 0.3% increase expected among economists polled by Briefing.com. This comes after the prior month's revised reading reflected a decrease of 1.0% (from -0.9%). Excluding transportation, durable orders increased 0.8% (consensus 0.7%) to follow the prior month's revised decrease of 0.1% (from 0.0%).

08:05AM ET
[BRIEFING.COM] S&P futures vs fair value: -4.40. Nasdaq futures vs fair value: -15.50. U.S. equity futures trade near their pre-market lows amid cautious action overseas. The S&P 500 futures hover four points below fair value, while Nasdaq futures underperform (-16 pts v fair value) as Amazon.com (AMZN 321.91, -36.20) weighs after reporting earnings.

Reviewing overnight developments:
  • Asian markets posted gains. Hong Kong's Hang Seng +0.3%, China's Shanghai Composite +1.0%, and Japan's Nikkei +1.1% 
    • In economic data: 
      • Japan's National CPI increased 3.6% year-over-year (previous 3.7%), while National Core CPI rose 3.3%, as expected. Separately, Tokyo CPI jumped 2.8% year-over-year (prior 3.0%) and Tokyo Core CPI climbed 2.8% (consensus 2.7%, prior 2.8%) 
      • South Korea's Consumer Confidence slipped to 105 from 107 
      • New Zealand's ANZ Business Confidence slipped to 39.7% from 42.8% 
      • Singapore's Industrial Production rose 0.4% year-over-year (expected 1.3%, previous -1.9%) 
    • In news: 
      • Markets in Asia took the release of Japan's CPI data in stride with the dollar/yen pair also not showing much movement in reaction to the release
  • Major European indices trade mostly lower. Great Britain's FTSE -0.1%, Germany's DAX -0.4%, and France's CAC -0.7%. Elsewhere, Italy's MIB -0.3% and Spain's IBEX +0.5% 
    • Participants received several data points: 
      • Eurozone M3 Money Supply increased 1.5% year-over-year (expected 1.1%, previous 1.0%), but Private Loans fell 1.7% year-over-year (consensus -1.8%, prior -2.0%) 
      • Germany's Ifo Business Climate Index fell to 108.0 from 109.7 (expected 109.4) as Current Assessment slipped to 112.9 from 114.8 (consensus 114.5) and Business Expectations ticked down to 103.4 from 104.8 (expected 104.5). Separately, GfK Consumer Climate ticked up to 9.0 from 8.9 (expected 8.9) 
      • Great Britain's GDP rose 0.8% quarter-over-quarter, while the year-over-year reading increased 3.1%. Separately, Index of Services rose 1.0%. All three figures matched expectations 
      • Italy's Wage Inflation came in at 0.1% month-over-month (previous 0.1%) 
      • Spain's PPI rose 0.4% year-over-year (previous -0.4%) 
    • Among news of note: 
      • In Ukraine, Volodymyr Hroisman was appointed acting prime minister following Arseniy Yatseniuk's resignation. Mr. Hroisman was previously the Deputy Prime Minister
In U.S. corporate news:

  • Amazon.com (AMZN 321.91, -36.20): -10.2% after missing bottom-line estimates and issuing cautious guidance 
  • Baidu (BIDU 220.03, +15.76): +7.7% after beating earnings estimates and guiding Q3 revenue higher 
  • KLA-Tencor (KLAC 68.26, -4.76): -6.5% missed earnings expectations 
  • LogMeIn (LOGM 44.80, +4.56): +11.3% after beating estimates and guiding higher 
  • Pandora Media (P 26.02, -2.70): -9.4% despite beating by one cent and guiding Q3 revenue above consensus 
  • Starbucks (SBUX 78.70, -1.75): -2.2% despite reporting a one-cent beat 
  • Visa (V 217.00, -5.74): -2.6% after beating earnings estimates and lowering its guidance
The Durable Orders report (Briefing.com consensus 0.3%) will be released at 8:30 ET.

06:53AM ET
[BRIEFING.COM] S&P futures vs fair value: -5.00. Nasdaq futures vs fair value: -18.50.

06:53AM ET
[BRIEFING.COM] Nikkei...15457.87...+173.50...+1.10%.  Hang Seng...24216.01...+74.50...+0.30%.

06:53AM ET
[BRIEFING.COM] FTSE...6813.11...-8.40...-0.10%.  DAX...9745.55...-48.50...-0.50%.

04:10PM ET
[BRIEFING.COM] The stock market maintained a narrow trading range on Thursday before ending the session essentially where it began. The S&P 500 added less than a point, while the small-cap Russell 2000 (-0.2%) underperformed.

Equity indices displayed early strength thanks in part to an overnight boost from better than expected economic data in China and Europe. Specifically, China's HSBC Manufacturing PMI surged to an 18-month high (52.0 from 50.7), while Eurozone Manufacturing PMI (51.9; expected 51.7) and Services PMI (54.4; expected 52.7) also surpassed estimates.

In addition to upbeat data from overseas, participants received a batch of better than expected earnings, but the market had a difficult time building on its early gain. The S&P 500 surrendered its opening advance during the initial minutes, but was able to follow that with a rally to a fresh record high (1991.39). The index could not hold that level into the afternoon and slipped back to its flat line by the close.

None of the sectors were able to distinguish themselves with several groups spending time atop the leaderboard. When it was all said and done, consumer staples (+0.4%), utilities (+0.4%) and consumer discretionary (+0.3%) occupied the top three spots.

The staples sector drew strength from beverage stocks with Dr Pepper Snapple (DPS 60.98, +2.54) surging 4.4% in reaction to its bottom-line beat. Peer PepsiCo (PEP 91.91, +1.09) advanced 1.2% after being upgraded to 'Buy' from 'Hold' at Stifel Nicolaus.

For its part, the utilities sector erased its week-to-date loss, but could only narrow its July decline to 3.4%. Despite the recent weakness, the rate-sensitive group holds a year-to-date gain of 12.5% versus a 7.6% increase for the S&P 500.

Elsewhere, the discretionary space was supported by retailers. Under Armour (UA 69.55, +8.92) spiked 14.7% to a new record high after delivering an above-consensus quarterly report, while the SPDR S&P Retail ETF (XRT 85.33, +0.55) rallied 0.7%. The strength among retailers outweighed the broad losses among homebuilders.

The industry group was pressured by a disappointing report from a major builder-DR Horton (DHI 21.94, -2.86)-and the June New Home Sales report, which fell short of expectations (406K; Briefing.com consensus 475K). The iShares Dow Jones US Home Construction ETF (ITB 23.38, -0.83) lost 3.4%.

Other high-beta groups like biotechnology and chipmakers did not fare much better. The iShares Nasdaq Biotechnology ETF (IBB 255.45, -3.89) tumbled 1.5%, while the health care sector (-0.2%) lagged throughout the session.

For its part, the PHLX Semiconductor Index lost 0.8% with Qualcomm (QCOM 76.17, -5.43) registering the largest drop. The stock fell 6.7% after its below-consensus Q4 earnings guidance overshadowed better than expected results.

Meanwhile, another tech stock-Facebook (FB 74.98, +3.69)-soared 5.2% after beating earnings and revenue expectations.

Treasuries retreated, making the bulk of their move ahead of the New York open. The 10-yr note lost 11 ticks, sending its yield higher by four basis points to 2.51%.

Participation was below average with a bit over 615 million shares changing hands at the NYSE.

Economic data was limited to initial claims and the New Home Sales report for June:
  • The initial claims level fell to 284,000 from an upwardly revised 303,000 (from 302,000), while the Briefing.com consensus expected an increase to 308,000 
    • The drop in claims brought the overall level to its lowest point since February 2006 and pressured the four-week moving average to its lowest level since May 2006 
    • The Department of Labor said there were no special factors associated with the report, but did note that claims tend to be volatile around this time of the year 
  • New home sales fell 8.1% in June to 406,000 from a downwardly revised 442,000 (from 504,000) in May, while the Briefing.com consensus expected a reading of 475,000 
    • Sales were also revised lower for April (408,000 from 425,000) and March (403,000 from 410,000) 
    • Median new home prices increased 5.3% y/y in June to $273,500 
Tomorrow, the Durable Orders report (Briefing.com consensus 0.3%) will be released at 8:30 ET. On the earnings front, AbbVie (ABBV 54.08, -0.40), LyondellBasell (LYB 102.42, -0.08), and American Electric Power (AEP 54.01, +0.04) will report their results ahead of the opening bell.
  • S&P 500 +7.6% YTD 
  • Nasdaq Composite +7.1% YTD 
  • Dow Jones Industrial Average +3.1% YTD 
  • Russell 2000 -0.6% YTD
Dow: -2.83… | Nasdaq: -1.59… | S&P: +0.97…
NASDAQ Adv/Dec 1258/1475. …NYSE Adv/Dec 1420/1604.

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