Updated: 01-30-2015

The Market at 04:15PM ET
Dow: -251.90… | Nasdaq: -48.17… | S&P: -26.26…
NASDAQ Vol: 2.05 bln… Adv: 709… Dec: 2503…
NYSE Vol: 1.19 bln… Adv: 999… Dec: 2126…

Moving the Market

Advance reading of Q4 GDP misses estimates (2.6%; Briefing.com consensus 3.2%)

S&P 500 -1.8% week-to-date, entering today

Sector Watch
Strong: Energy
Weak: Consumer Staples, Health Care, Financials, Industrials, Utilities

04:15PM ET
[BRIEFING.COM] The stock market ended a down month on a sharply lower note. The Dow (-1.5%) and S&P 500 (-1.3%) widened their respective January losses to 3.7% and 3.1% while the Nasdaq Composite (-1.0%) lost 2.1%. Furthermore, this marked the first time since early 2012 that the market registered losses in two consecutive months.

The key indices struggled at the start after a disappointing GDP report for the fourth quarter introduced a new wrinkle into a deteriorating outlook for global growth. Overnight, Japan and the eurozone saw a slowdown in their respective inflation data while a handful of U.S. companies joined a growing chorus of names that have reduced their guidance for the first quarter. On that note, consensus Q1 earnings growth has contracted to just 0.2% from 8.6% on December 1, according to S&P Capital IQ.

Equities followed their lower open with another slip, but the S&P 500 turned around just north of the 2,000 level and spent the afternoon working back to its flat line. The rebound coincided with a Der Spiegel report indicating Germany is ready to back EUR20 billion in aid for Greece, but the package would be contingent on Greece accepting reform conditions imposed by the troika. This contrasted with earlier comments from Greek Finance Minister Yanis Varoufakis who said Greece will no longer negotiate with the troika. Furthermore, Germany's government was quick to deny the report from Der Spiegel.

The afternoon rebound also featured a surge in crude oil, which spiked to end the day higher by 8.0% at $48.17/bbl. However, crude notched its high just ahead of the 14:30 ET pit close and inched away from that level in electronic trade while the S&P 500 slumped back below its 100-day moving average (2,010) to a new low.

Nine of ten sectors registered losses while energy (+0.7%) benefitted from the spike in crude. However, today's surge was a small victory considering the sector lost 4.9% in January. Dow component Chevron (CVX 102.53, -0.47) shed 0.5% after its plans to cut capital expenditures by 13.0% overshadowed better than expected results.

Speaking of the Dow, the index stayed near the S&P 500, but a 2.8% spike in the shares of Visa (V 254.91, +6.91) masked the fact that 15 of 30 Dow members lost more than 2.0% while four of the 15 tumbled 3.0% or more. As for Visa, the payment processor spiked after beating estimates and announcing a 4:1 split, which will become effective March 19 and remove some of Visa's influence over the price-weighted index.

In other earnings of note, Amazon.com (AMZN 354.53, +42.75) soared 13.7% after beating operating income estimates and issuing cautious guidance for the first quarter. The stock helped the consumer discretionary sector (-1.1%) finish a few steps ahead of the broader market.

Although the market endured a whipsaw session, that was not the case with Shake Shack (SHAK 45.90, +24.90), which made its public debut today. Shares of the hamburger chain rocketed higher by 118.6% after pricing the IPO at $21.

Treasuries spiked, ending near their highs with the 10-yr yield down eight basis points at 1.67%.

Today's participation was well ahead of average with more than a billion shares changing hands at the NYSE floor.

Economic data included Q4 GDP, Employment Cost Index, Chicago PMI, and Michigan Sentiment:
  • According to the advance estimate, GDP increased 2.6% in Q4 2014 (Briefing.com consensus 3.2%), down from a 5.0% increase in the third quarter 
    • Real final sales increased 1.8% in the fourth quarter after increasing 5.0% in the third quarter 
    • Much of the GDP gain was the result of lower prices adding a boost to the "real" economy. Nominal GDP growth was anemic (2.5%), which was down by more than 50% from both second (6.8%) and third quarter (6.4%) growth levels 
    • Consumption spending was a bright spot, increasing 4.3%, which was the largest jump since 2006 
  • The Employment Cost index Increased 0.6% in Q4, down from a 0.7% increase in Q3 while the Briefing.com consensus expected an increase of 0.5% 
    • Wages and salaries decelerated, up 0.5% after increasing 0.8% in Q3 2014 
    • Benefits spending growth increased 0.6% for a second consecutive quarter 
  • The Chicago PMI for January increased to 59.4 from 58.8 while the Briefing.com consensus expected a drop to 58.0 
    • Production levels accelerated as the related index increased to 64.1 in January from 62.7 in December 
  • The University of Michigan Consumer Sentiment Index was virtually unchanged in January, ticking down to 98.1 from 98.2 (Briefing.com consensus 98.2) 
    • Lower gasoline prices and improvements in the labor market were key for overall sentiment growth in January 
On Monday, December Personal Income, Personal Spending, and Core PCE Prices will be reported at 8:30 ET while the ISM Index for January and December Construction Spending will be released at 10:00 ET.
  • Nasdaq Composite -2.1% YTD 
  • S&P 500 -3.1% YTD 
  • Russell 2000 -3.4% YTD 
  • Dow Jones Industrial Average -3.7% YTD
Week in Review: Stocks Slide to End January

The stock market began the week on a quiet note with the Dow (unch), Nasdaq (+0.3%), and S&P 500 (+0.3%) settling near their flat lines. The small-cap Russell 2000 (+1.0%) outperformed, but the action took place against the backdrop of anemic trading volume as the East Coast braced for Winter Storm Juno. The intraday lack of trading activity masked the fact that the weekend featured an important election in Greece. As expected, the anti-bailout Syriza party came away victorious, and despite failing to secure absolute majority, the party was able to form a coalition with Independent Greeks-a party that also opposes EU bailouts. So far, Syriza officials have been very careful when discussing the future of Greece with Finance Minister Yanis Varoufakis saying a euro exit is not in the plans and that talks of a 'Grexit' should not be sensationalized.

The major averages stumbled on Tuesday with the S&P 500 (-1.3%) returning below its 50-day moving average (2,047). The benchmark index settled ahead of the Dow Jones Industrial Average (-1.7%), but behind the Russell 2000 (-0.5%). Stocks careened lower at the start of the session after several large companies cautioned that dollar strength will present a headwind to their future earnings. Most notably, Caterpillar (CAT), DuPont (DD), Microsoft (MSFT), and Procter & Gamble (PG) lost between 1.3% and 9.3% while Pfizer (PFE), and United Technologies (UTX) held up relatively well despite their warnings. However, cautious guidance from six Dow components was not the only issue as investors had to digest a disappointing Durable Orders report while Consumer Confidence and New Home Sales beat expectations.

Equities finished the midweek session on a lower note despite showing considerable strength in the early going. The S&P 500 (-1.4%) lost its 100-day moving average (2,010) and settled behind the Nasdaq Composite (-0.9%) while the Russell 2000 (-1.7%) lagged throughout the day. The key indices appeared to be on solid footing at the start with the Nasdaq up 1.0% after Apple (AAPL) reported better than expected results for the quarter and issued strong guidance. The stock surged 5.7% and helped the technology sector (-0.1%) finish near its flat line while most of the remaining sectors struggled. The benchmark index traded little changed ahead of the afternoon release of the latest policy statement from the Fed, but slumped into the close. Once again, the policy directive reiterated the Fed's intent to remain patient in determining the appropriate timing for the first rate hike, which helped send Treasuries to new highs. The 10-yr yield fell ten basis points to 1.73% while the 30-yr yield dropped 11 basis points to register its lowest close on record (2.28%). The Fed described U.S. economic growth as 'solid' while categorizing job growth as 'strong.' The central bank did not spend much time discussing overseas developments, which could help explain some of the selling that developed after the statement was released. Furthermore, the FOMC showed little concern over low inflation, saying that while the price level is expected to decline in the near term, a gradual return to 2.0% should follow once the 'transitory effects of lower energy prices and other factors dissipate.'

The market endured a volatile session on Thursday, but a steady rebound off morning lows helped the major averages register their first gain in three days. The Dow Jones Industrial Average paced the advance (+1.3%) while the S&P 500 (+1.0%) reclaimed its 100-day moving average (2,010). Equities faced some selling pressure at the start amid continued weakness in crude oil. The energy component set a fresh January low in the $43.60/bbl area, but was able to charge back to unchanged by the pit close. That rebound improved the overall risk tolerance and helped the S&P 500 find support just a point above its January low (1988.12). Dip buyers entered the picture about 90 minutes after the start of the session, which helped all ten sectors rebound off their lows. The materials space (+1.4%) finished in the lead thanks to better than expected earnings from Dow Chemical (DOW). The stock spiked 4.6% and gave a boost to its peers. Meanwhile, the other commodity-related sector-energy (+0.2%)-was the weakest performer.
Dow: -251.90… | Nasdaq: -48.17… | S&P: -26.26…
NASDAQ Adv/Dec 709/2503. …NYSE Adv/Dec 999/2126.

03:35PM ET
[BRIEFING.COM]
  • WTI crude oil steals the show on a late-day surge higher
  • Mar crude oil picked up steam following rumors that ISIS was on the move in Northern Iraq, according to CNBC
  • Who knows what's actually going on, yet, but either way March crude oil closed 8% higher at $48.17/barrel
  • Mar nat gas lost $0.03 to $2.69/MMBtu
  • Feb gold rallied $24 to $1278.90/oz, while Mar silver rose $0.45 to $16.76/zo
  • Mar copper closed $0.04  higher at $2.49/lb
Dow: -155.70… | Nasdaq: -28.12… | S&P: -16.29…
NASDAQ Adv/Dec 767/1986. …NYSE Adv/Dec 1084/2017.

03:00PM ET
[BRIEFING.COM] After climbing to unchanged levels at the time of our last update on the heels of strength in crude oil futures, U.S. indices have slid back into negative territory.

A late day surge in WTI crude helped the fossil fuel close up 8% to $48.17/bbl on the day amid no news. On the heels of that strength, the energy sector (+1.2%) is now the standout strongest performer on the day, while consumer staples (-1.23%) remain the heaviest decliner. 

Following the late day gains in crude, shares in airline stocks are having a notably weak afternoon with Spirit Airlines (SAVE), American Airlines (AAL), and United Continental (UAL) all down over 6% in recent trade.

Despite today's action, energy still remains one of the worst S&P sectors in January as we approach today's close, only trumped by financials, which are down 6.3% month-to-date.
Dow: -123.2… | Nasdaq: -16.05… | S&P: -12.54…
NASDAQ Adv/Dec 789/2153. …NYSE Adv/Dec 1118/1960.

02:30PM ET
[BRIEFING.COM] The S&P 500 (unch) has climbed to a new high with 90 minutes remaining in the final January session. Given its current level, the benchmark index is on track to end the month with a 1.9% decline.

Similar to the S&P 500, crude oil is on its way to a January decline, but the energy component has charged higher during the past hour or so. WTI crude trades higher by 7.5% at $47.93/bbl, but despite today's surge, it remains lower by 10.0% for the month.

The recent spike in equities and crude has been accompanied by some selling in the Treasury market. The 10-yr yield has narrowed its decline to six basis points at 1.69% after marking a low near 1.65%.
Dow: -24.15… | Nasdaq: +8.22… | S&P: +0.01…
NASDAQ Adv/Dec 914/1990. …NYSE Adv/Dec 1297/1767.

01:55PM ET
[BRIEFING.COM] Equity indices hover near their afternoon highs.

There was a bevy of economic data released this morning, but the lone standout was the big miss in fourth quarter GDP growth.

According to the advance estimate, GDP increased 2.6% in Q4 2014, down from a 5% increase in the third quarter. The Briefing.com Consensus expected GDP to increase 3.2%.

Stripping out inventories, real final sales increased 1.8% in the fourth quarter after increasing 5.0% in the third quarter.

There was no doubt that the economy softened in the fourth quarter. Just about all of the income data over the last few months were notably weaker. Much of the GDP gain was the result of lower prices adding a boost to the "real" economy. Nominal GDP growth was anemic (2.5%), which was down by more than 50% from both second (6.8%) and third quarter (6.4%) growth levels.

One bright spot was consumption spending, which increased 4.3% in the fourth quarter. That was the largest quarterly increase since Q1 2006. Notably, the gains were widespread within the consumption spectrum: durable goods spending increased 7.4%, nondurable goods spending increased 7.4%, and services spending increased 3.7%.
Dow: -68.09… | Nasdaq: -0.60… | S&P: -5.66…
NASDAQ Adv/Dec 797/2059. …NYSE Adv/Dec 1086/1952.

01:30PM ET
[BRIEFING.COM] Equity indices have backed away from their rebound highs with the S&P 500 (-0.6%) back below its 100-day moving average (2,010). Meanwhile, the Russell 2000 (-1.6%) continues showing relative weakness and currently trades a few points below its 50-day moving average (1,180).

Nine sectors remain in negative territory with industrials (-1.1%) and consumer staples (-1.1%) occupying the bottom of today's leaderboard. Transport stocks have contributed to the underperformance of the industrial sector, evidenced by a 1.4% decline in the Dow Jones Transportation Average. Including today's decline, the bellwether complex is now down 4.4% for the month versus a 2.5% decline for the S&P 500.

Elsewhere, Treasuries continue ranging near their highs with the 10-yr yield down nine basis points at 1.67%.
Dow: -126.10… | Nasdaq: -13.74… | S&P: -12.91…
NASDAQ Adv/Dec 728/2104. …NYSE Adv/Dec 942/2113.

01:00PM ET
[BRIEFING.COM] The major averages trade lower at midday with the Nasdaq Composite (-0.2%) staying ahead of the Dow (-0.7%) and S&P 500 (-0.7%).

Equities have faced selling pressure since the opening bell amid continued concerns about the pace of global growth and a devolving outlook for first quarter earnings. To that latter point, cautious guidance for the first quarter has slashed the consensus Q1 earnings growth to 0.2% from 8.6% on December 1, according to S&P Capital IQ. In addition, the advance GDP report for the fourth quarter indicated growth of 2.6% which was below the 3.2% expected by the Briefing.com consensus.

The market retreated through the first hour of today's session and spent the next hour near its low before charging off that level. The move coincided with a Der Spiegel report indicating Germany is ready to back EUR20 billion in aid for Greece, but the package would be contingent on Greece accepting reform conditions imposed by the troika. This contrasted with earlier comments from Greek Finance Minister Yanis Varoufakis who said Greece will no longer negotiate with the troika. Furthermore, Germany's government was quick to deny the report.

In any case, the S&P 500 was able to claw back above its 100-day moving average (2,010), where it currently trades. Only two sectors sport gains, but neither materials (+0.1%) nor telecom services (+0.1%) hold much sway over the broader market. The two groups comprise just 5.5% of the entire market.

As for heavily-weighted sectors, financials (-0.8%), industrials (-0.9%), and consumer staples (-1.0%) lag while consumer discretionary (-0.2%) and technology (-0.2%) outperform. Furthermore, the Dow trades in-line with the S&P 500, but that is largely due to a 4.6% spike in its top component-Visa (V 259.47, +11.47). Shares of Visa have rallied in reaction to better than expected results while 27 of the remaining 29 Dow components hold losses with 16 names down more than 1.0%.

Visa's strength has provided the technology sector with a measure of support while Google (GOOGL 536.89, +23.66) has chipped in despite missing earnings estimates.

Elsewhere, the discretionary sector has stayed ahead of the broader market with help from Amazon.com (AMZN 353.55, +41.77). The online retailer has soared 13.5% after beating operating income estimates and guiding lower.

Also of note, crude oil has charged off its morning low and now trades higher by 2.2% at $45.51/bbl while the energy sector (-0.6%) trades near the S&P 500. Chevron (CVX 100.66, -2.34) has tumbled 2.3% after the company's plans to cut capital expenditures by 13.0% overshadowed better than expected results.

Treasuries hold solid gains with the 10-yr yield down nine basis points at 1.66%.

Economic data included Q4 GDP, Employment Cost Index, Chicago PMI, and Michigan Sentiment:
  • According to the advance estimate, GDP increased 2.6% in Q4 2014 (Briefing.com consensus 3.2%), down from a 5.0% increase in the third quarter 
    • Real final sales increased 1.8% in the fourth quarter after increasing 5.0% in the third quarter 
    • Much of the GDP gain was the result of lower prices adding a boost to the "real" economy. Nominal GDP growth was anemic (2.5%), which was down by more than 50% from both second (6.8%) and third quarter (6.4%) growth levels o Consumption spending was a bright spot, increasing 4.3%, which was the largest jump since 2006 
  • The Employment Cost index Increased 0.6% in Q4, down from a 0.7% increase in Q3 while the Briefing.com consensus expected an increase of 0.5% 
    • Wages and salaries decelerated, up 0.5% after increasing 0.8% in Q3 2014 
    • Benefits spending growth increased 0.6% for a second consecutive quarter 
  • The Chicago PMI for January increased to 59.4 from 58.8 while the Briefing.com consensus expected a drop to 58.0 
    • Production levels accelerated as the related index increased to 64.1 in January from 62.7 in December 
  • The University of Michigan Consumer Sentiment Index was virtually unchanged in January, ticking down to 98.1 from 98.2 (Briefing.com consensus 98.2) 
    • Lower gasoline prices and improvements in the labor market were key for overall sentiment growth in January
Dow: -125.71… | Nasdaq: -9.11… | S&P: -13.51…
NASDAQ Adv/Dec 772/2027. …NYSE Adv/Dec 977/2064.

12:30PM ET
[BRIEFING.COM] The stock market has charged off its session low with the Nasdaq Composite (+0.2%) returning into positive territory. Meanwhile, the S&P 500 has regained its 100-day average (2,010) and trimmed its loss to 0.3% after spiking almost 15 points off its low.

The rebound took place after Der Spiegel reported that the Germany is willing to back as much as EUR20 billion in rescue funds for Greece. Interestingly, the report crossed hours after Greek Finance Minister Yanis Varoufakis said his government will no longer negotiate with the troika and was met with an immediate denial from the German government.

Treasuries inched down from their highs, but they continue holding solid gains with the 10-yr yield down nine basis points at 1.67%.
Dow: -62.42… | Nasdaq: +7.01… | S&P: -6.14…
NASDAQ Adv/Dec 804/1949. …NYSE Adv/Dec 1022/2000.

11:55AM ET
[BRIEFING.COM] Equity indices remain near their lows with the Dow (-0.9%) and S&P 500 (-0.9%) trading neck-in-neck. However, this masks the fact that the Dow's largest component by weight-Visa (V 259.33, +11.33)-has surged 4.6% after beating earnings estimates. If it wasn't for Visa, the Dow would trade behind the broader market with 22 of its 30 components down 1.0% or more.

Although Visa is the most influential Dow component at this time, the credit card processor will lose that title on March 19 when a 4:1 split goes into effect. Elsewhere, Visa's peer, MasterCard (MA 82.26, +0.88), is higher by 1.1% after beating earnings estimates and issuing cautious revenue guidance.
Dow: -158.41… | Nasdaq: -20.55… | S&P: -18.04…
NASDAQ Adv/Dec 679/2033. …NYSE Adv/Dec 886/2123.

11:25AM ET
[BRIEFING.COM] Another round of new lows for the major averages has the S&P 500 down 0.9% at this juncture.

All ten sectors are now in negative territory with utilities (-1.3%) showing the largest decline. This month's leading sector has narrowed its January gain to 3.3% while other countercyclical groups have not fared much better. Health care (-1.1%) and consumer staples (-1.2%) underperform while the telecom services sector (-0.1%) hovers near its flat line.

Today's selling has been closely correlated with the performance of the dollar/yen pair. Overnight, the yen strengthened after Japan's latest CPI data showed a slowdown in inflation. The currency pair traded near its low when today's session started (117.60), and has slipped further to 117.30, where it currently trades. Despite retreating against the yen, the dollar has climbed at the expense of other currencies with the Dollar Index higher by 0.1% (94.85, +0.06).
Dow: -148.71… | Nasdaq: -24.74… | S&P: -18.82…
NASDAQ Adv/Dec 624/2068. …NYSE Adv/Dec 845/2143.

10:55AM ET
[BRIEFING.COM] The S&P 500 (-0.8%) has marked a fresh session low while the Nasdaq Composite (-0.6%) has dipped into the red. Meanwhile, small caps underperform with the Russell 2000 down 1.5%.

Even though the Russell trails the broader market today, the index is on track to end the month with a comparable decline to the S&P 500 as both indices sport January losses near 2.6%. The weakness in equities has been met with a rally among Treasuries. The 10-yr yield is lower by eight basis points at 1.67% today, and down more than 45 basis points from where it ended 2014.

Seven sectors trade in the red with heavily-weighted financials (-1.1%), industrials (-1.1%), health care (-1.1%), and consumer staples (-1.2%) trailing the broader market. Also of note, the biotech group trades in the red despite better than expected results from Biogen Idec (BIIB 388.11, +34.86). The stock has surged 9.9% while the iShares Nasdaq Biotechnology ETF (IBB 321.98, -0.87) trades lower by 0.3%.
Dow: -118.21… | Nasdaq: -25.78… | S&P: -15.88…
NASDAQ Adv/Dec 581/2018. …NYSE Adv/Dec 875/2075.

10:35AM ET
[BRIEFING.COM]
  • WTI Crude oil prices rallied back in recent trade to today's high after losing steam and selling off to a new LoD this morning
  • Mar crude is now +1.8 at $45.33/barrel
  • Natural gas, on the other hand, has been in the red all day and is now -1.8% at $2.67/MMBtu
  • Precious metals have rallied in recent trade, hitting new highs on the day
  • Apr gold is now +1.1% at $1269.30, while Mar silver is +1.8% at $17.07/oz
  • Copper is showing some strength as well. Mar copper is now +1.3% at $2.48/lb
Dow: -128.69… | Nasdaq: -28.93… | S&P: -16.89…
NASDAQ Adv/Dec 601/1950. …NYSE Adv/Dec 859/2064.

10:00AM ET
[BRIEFING.COM] The S&P 500 trades lower by 0.4%.

The University of Michigan Consumer Sentiment report for January was revised down to 98.1 from 98.2 while the Briefing.com consensus expected the reading to remain unchanged.
Dow: -49.77… | Nasdaq: -5.15… | S&P: -7.35…
NASDAQ Adv/Dec 697/1720. …NYSE Adv/Dec 920/1918.

09:45AM ET
[BRIEFING.COM] Just released, the Chicago PMI for January rose to 59.4 from 58.3, while the Briefing.com consensus expected a decrease to 58.0.
Dow: -21.74… | Nasdaq: +14.15… | S&P: -5.10…
NASDAQ Adv/Dec 924/1365. …NYSE Adv/Dec 765/2000.

09:45AM ET
[BRIEFING.COM] Equity indices began the day in mixed fashion. The S&P 500 (-0.3%) has been pressured by losses in eight of ten sectors while the Nasdaq Composite (+0.3%) has received support from the likes of Amazon.com (AMZN 348.37, +36.59), Biogen Idec (BIIB 394.33, +41.04), and Google (GOOGL 524.44, +11.21). The three names are up between 2.2% and 12.0% in the early going.

Meanwhile, eight sectors trade in negative territory with economically-sensitive financials (-0.9%) and energy (-0.8%) showing the largest losses. The two groups are on track to end January well behind their peers with respective losses of 6.2% and 6.1%.

On the upside, health care (+0.1%) and technology (+0.1%) hold slim gains with the health care sector looking to defend its January gain of 2.9%.
Dow: -19.01… | Nasdaq: +11.89… | S&P: -5.80…
NASDAQ Adv/Dec 897/1363. …NYSE Adv/Dec 721/2034.

09:14AM ET
[BRIEFING.COM] S&P futures vs fair value: -16.70. Nasdaq futures vs fair value: -5.50. The stock market is on track for a lower open with futures on the S&P 500 trading 17 points below fair value. Index futures have faced selling pressure throughout the night, notching their pre-market lows within the past 30 minutes after the advance reading of Q4 GDP missed estimates. According to the report, GDP rose 2.6% while the Briefing.com consensus expected an increase of 3.2%.

Despite the slowdown in overall growth, consumption spending was relatively strong, increasing 4.3%, which was the largest jump since 2006.

The GDP report was followed by a downtick in futures and a spike in the Treasury market that sent the 10-yr yield lower by eight basis points to 1.68%.

More data remains with the Chicago PMI report for January (consensus 58.0) set to cross the wires at 9:45 ET while the final reading of the January Michigan Sentiment Index will follow at 9:55 ET (consensus 98.2).

In addition to disappointing GDP data, investors have had to deal with cautious guidance for the first quarter that has slashed the consensus Q1 earnings growth to 0.2% from 8.6% on December 1, according to S&P Capital IQ. On that note, Amazon.com (AMZN 351.31, +39.53) beat operating income estimates, but was the latest large name to issue cautious guidance.

08:53AM ET
[BRIEFING.COM] S&P futures vs fair value: -18.30. Nasdaq futures vs fair value: -15.00. The S&P 500 futures trade 18 points below fair value.

Asian markets finished the week on a mostly lower note. The yen strengthened after Japan's inflation data did not jive with the upbeat outlook provided by the country's government. The dollar/yen pair trades near 117.75 after sliding from 118.30. 
  • In economic data: 
    • Japan's Housing Starts fell 14.7% year-over-year (expected -14.8%; prior -14.3%) while Industrial Production rose 1.0% month-over-month (expected 1.3%; prior -0.5%). Separately, National CPI rose 2.4% (consensus 2.3%; prior 2.4%) while National Core CPI increased 2.5% (expected 2.6%; previous 2.7%). Also of note, Household Spending rose 0.4% month-over-month (forecast 0.3%; last 0.4%) while the Unemployment Rate ticked down to 3.4% from 3.5% (expected 3.5%) 
    • Australia's PPI ticked up 0.1% quarter-over-quarter (expected 0.3%; prior 0.2%) while Private Sector Credit increased 0.5%, as expected 
    • Singapore's Unemployment Rate ticked down to 1.9% from 2.0% (expected 2.0%) 
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  • Japan's Nikkei (+0.4%) outperformed with help from technology companies. Advantest and Sumco jumped 9.3% and 8.1%, respectively. 
  • Hong Kong's Hang Seng (-0.4%) slipped into the close. Casino and gaming names continued their recent woes with Galaxy Entertainment and Sands China both losing near 3.0%. 
  • China's Shanghai Composite (-1.6%) ended on its session low. Technology names underperformed with China National Software, Linewell Software, and Yonyou Network Technology losing between 8.0% and 9.5%. 
  • India's Sensex (-1.7%) retreated after a series of record closes. Financials lagged with State Bank of India and ICICI Bank down 5.5% and 5.2%, respectively, after ICICI's earnings showed a spike in provisions for bad loans. 
Major European indices trade lower with France's CAC (-0.6%) leading the way. Investors in Europe are anxious to receive an update from the ongoing talks between Greek Prime Minister Alexis Tsipras and Eurogroup Chair Jeroen Dijsselbloem.
  • Economic data was plentiful: 
    • Eurozone CPI fell 0.6% year-over-year (expected -0.5%; prior -0.2%) while Core CPI rose 0.5% (consensus 0.6%; last 0.7%). Separately, the Unemployment Rate ticked down to 11.4% from 11.5% (consensus 11.5%) 
    • Germany's Retail Sales ticked up 0.2% month-over-month (expected 0.3%, prior 0.9%) while the year-over-year reading increased 4.0% (consensus 3.5%; last -1.0%)
    • UK's BoE Consumer Credit expanded by GBP578 million (expected GBP1.20 billion; prior GBP1.23 billion) while Mortgage Lending came in at GBP1.60 billion (expected GBP2.00 billion) 
    • French Consumer Spending increased 1.5% month-over-month (expected 0.2%; prior 0.2%) 
    • Italy's PPI fell 1.8% year-over-year (prior -1.2%) 
    • Spain's GDP rose 0.7% quarter-over-quarter (expected 0.6%; prior 0.5%) while CPI fell 1.4% year-over-year (expected -1.2%; last -1.0%) 
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  • UK's FTSE is lower by 0.3% with energy and consumer names on the defensive. Diageo, J Sainsbury, and Royal Dutch Shell are down between 1.3% and 2.4%. 
  • Germany's DAX has given up 0.4% with heavyweights Bayer, Siemens, and Volkswagen dragging the index down. The three names are down between 0.7% and 2.7%. Lanxess outperforms, trading higher by 0.4%. 
  • In France, the CAC is lower by 0.6%. Consumer names are among the laggards with Carrefour, Pernod Ricard, L'Oreal, and Danone down between 0.6% and 1.7%.

08:32AM ET
[BRIEFING.COM] S&P futures vs fair value: -14.80. Nasdaq futures vs fair value: -7.30. The S&P 500 futures trade 15 points below fair value.

The advance estimate of fourth quarter GDP pointed to an expansion of 2.6%, while the Briefing.com consensus expected a reading of 3.2%. Meanwhile, the fourth quarter GDP Deflator came in at 0.0%, while the consensus expected an increase of 1.0%.

Separately, the Q4 Employment Cost Index rose 0.6%, while the Briefing.com consensus expected an increase of 0.5%.

07:59AM ET
[BRIEFING.COM] S&P futures vs fair value: -11.50. Nasdaq futures vs fair value: -5.30. U.S. equity futures are under pressure amid cautious action overseas. The S&P 500 futures hover 12 points below fair value after a steady retreat throughout the night. However, more volatility is expected around 8:30 ET when the advance reading of Q4 GDP crosses the wires. The Briefing.com consensus expects the report to indicate growth of 3.2%. The Q4 Employment Cost Index (consensus 0.5%) will also be reported at 8:30 ET while the Chicago PMI report for January (consensus 58.0) will cross the wires at 9:45 ET and the final reading of the January Michigan Sentiment Index will follow at 9:55 ET (consensus 98.2).

Treasuries hold gains with the 10-yr yield down four basis points at 1.71%.

In U.S. corporate news of note:
  • Amazon.com (AMZN 346.50, +34.72): +11.1% after beating operating income estimates and issuing cautious guidance. 
  • Biogen Idec (BIIB 374.52, +21.27): +6.0% in reaction to better than expected results and upbeat guidance. 
  • Deckers Outdoor (DECK 70.00, -12.27): -14.9% following disappointing results and lowered guidance. 
  • Dick's Sporting Goods (DKS 52.00, -3.14): -5.7% after the New York Post reported the retailer is not for sale. This follows reports from Reuters that suggested the company could go private. 
  • Google (GOOGL 520.35, +7.12): +1.4% despite missing estimates. 
  • Visa (V 257.59, +9.59): +3.9% after beating expectations and announcing a 4:1 stock split, effective March 19. 
Reviewing overnight developments:
  • Asian markets ended mostly lower. China's Shanghai Composite -1.6%, Hong Kong's Hang Seng -0.4%, and Japan's Nikkei +0.4% 
    • In economic data: 
      • Japan's Housing Starts fell 14.7% year-over-year (expected -14.8%; prior -14.3%) while Industrial Production rose 1.0% month-over-month (expected 1.3%; prior -0.5%). Separately, National CPI rose 2.4% (consensus 2.3%; prior 2.4%) while National Core CPI increased 2.5% (expected 2.6%; previous 2.7%). Also of note, Household Spending rose 0.4% month-over-month (forecast 0.3%; last 0.4%) while the Unemployment Rate ticked down to 3.4% from 3.5% (expected 3.5%) 
      • Australia's PPI ticked up 0.1% quarter-over-quarter (expected 0.3%; prior 0.2%) while Private Sector Credit increased 0.5%, as expected 
      • Singapore's Unemployment Rate ticked down to 1.9% from 2.0% (expected 2.0%) 
    • In news: 
      • The yen strengthened after Japan's inflation data did not jive with the upbeat outlook provided by the country's government. The dollar/yen pair trades near 117.70 after sliding from 118.30
  • Major European indices trade mostly lower. UK's FTSE -0.4%, France's CAC -0.4%, and Germany's DAX -0.3%. Elsewhere, Spain's IBEX +0.1% and Italy's MIB -0.1% 
    • Economic data was plentiful: 
      • Eurozone CPI fell 0.6% year-over-year (expected -0.5%; prior -0.2%) while Core CPI rose 0.5% (consensus 0.6%; last 0.7%). Separately, the Unemployment Rate ticked down to 11.4% from 11.5% (consensus 11.5%) 
      • Germany's Retail Sales ticked up 0.2% month-over-month (expected 0.3%, prior 0.9%) while the year-over-year reading increased 4.0% (consensus 3.5%; last -1.0%) 
      • UK's BoE Consumer Credit expanded by GBP578 million (expected GBP1.20 billion; prior GBP1.23 billion) while Mortgage Lending came in at GBP1.60 billion (expected GBP2.00 billion) 
      • French Consumer Spending increased 1.5% month-over-month (expected 0.2%; prior 0.2%) 
      • Italy's PPI fell 1.8% year-over-year (prior -1.2%) 
      • Spain's GDP rose 0.7% quarter-over-quarter (expected 0.6%; prior 0.5%) while CPI fell 1.4% year-over-year (expected -1.2%; last -1.0%) 
    • Among news of note: 
      • Investors in Europe are anxious to receive an update from the ongoing talks between Greek Prime Minister Alexis Tsipras and Eurogroup Chair Jeroen Dijsselbloem

07:05AM ET
[BRIEFING.COM] S&P futures vs fair value: -9.00. Nasdaq futures vs fair value: +2.00.

07:05AM ET
[BRIEFING.COM] Nikkei...17,674.39...+68.20...+0.40%.  Hang Seng...24,507.05...-88.80...-0.40%.

07:05AM ET
[BRIEFING.COM] FTSE...6,784.54...-26.10...-0.40%.  DAX...10,727.53...-10.80...-0.10%.

04:10PM ET
[BRIEFING.COM] The stock market endured a volatile session on Thursday, but a steady rebound off morning lows helped the major averages register their first gain in three days. The Dow Jones Industrial Average paced the advance (+1.3%) while the S&P 500 (+1.0%) reclaimed its 100-day moving average (2,010).

Equities faced some selling pressure at the start amid continued weakness in crude oil. The energy component set a fresh January low in the $43.60/bbl area, but was able to charge back to unchanged by the pit close. That rebound improved the overall risk tolerance and helped the S&P 500 find support just a point above its January low (1988.12). Dip buyers entered the picture about 90 minutes after the start of the session, which helped all ten sectors rebound off their lows.

The materials space (+1.4%) finished in the lead thanks to better than expected earnings from Dow Chemical (DOW 45.02, +1.99). The stock spiked 4.6% and gave a boost to its peers. Meanwhile, the other commodity-related sector-energy (+0.2%)-was the weakest performer.

Elsewhere, the discretionary sector (+1.3%) outperformed throughout the session after several major components reported earnings. Homebuilders surged after PulteGroup (PHM 21.82, +1.24) and Ryland Group (RYL 39.62, +2.95) reported better than expected results with iShares Dow Jones US Home Construction ETF (ITB 25.86, +0.83) spiking 3.3%. Heavily-weighted Ford (F 14.85, +0.39) and McDonald's (MCD 93.27, +4.49) also rallied after the former beat estimates while the latter announced the retirement of its Chief Executive Officer. The broad strength within the sector overshadowed an 8.8% loss in the shares of Alibaba (BABA 89.81, -8.64) after the company missed revenue expectations.

Similarly, the industrial sector (+1.2%) outperformed while technology (+1.1%) overtook the broader market into the close. Top-weighted names like Apple (AAPL 118.90, +3.59), IBM (IBM 155.48, +3.93), and Microsoft (MSFT 42.01, +0.82) jumped between 2.0% and 3.1%, which helped overshadow a 10.3% decline in Qualcomm (QCOM 63.69, -7.30) brought on by disappointing guidance for the fiscal year.

When the dust settled, four of six cyclical sectors ended ahead of the S&P 500 while the utilities sector (+1.3%) represented the only outperformer on the countercyclical side.

Treasuries spent the day in a steady retreat with the 10-yr yield climbing four basis points to 1.76%.

Today's participation was a bit above average as 843 million shares changed hands at the NYSE floor.

Economic data was limited to jobless claims and pending home sales:
  • The initial claims level dropped to 265,000 for the week ending January 24 from an upwardly revised 308,000 (from 307,000) while the Briefing.com consensus expected a decline to 301,000 
    • Not only did the drop break three consecutive weeks above 300,000, but the initial claims level fell to its lowest level since April 2000 o As it has for the past several months, the Department of Labor reported that there were no special factors impacting the report 
    • The continuing claims level declined to 2.385 million from an upwardly revised 2.456 million (from 2.443 million) while the consensus expected a drop to 2.429 million 
  • Pending home sales for December fell 3.7% while the Briefing.com consensus expected an increase of 0.6% 
Tomorrow, the advance reading of Q4 GDP (Briefing.com consensus 3.2%) will be released at 8:30 ET alongside the Q4 Employment Cost Index (consensus 0.5%). The Chicago PMI report for January (consensus 58.0) will cross the wires at 9:45 ET while the final reading of the January Michigan Sentiment Index will be reported at 9:55 ET (consensus 98.2).
  • Nasdaq Composite -1.1% YTD 
  • Russell 2000 -1.1% YTD 
  • S&P 500 -1.8% YTD 
  • Dow Jones Industrial Average -2.3% YTD
Dow: +225.48… | Nasdaq: +45.41… | S&P: +19.09…
NASDAQ Adv/Dec 1963/1040. …NYSE Adv/Dec 2099/999.

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