Updated: 10-21-2014

The Market at 12:25PM ET
Dow: +172.02… | Nasdaq: +77.47… | S&P: +29.78…
NASDAQ Vol: 858.2 mln… Adv: 1924… Dec: 721…
NYSE Vol: 311.8 mln… Adv: 2501… Dec: 544…

Moving the Market

U.S. futures and European equities surge amid reports ECB is looking to buy corporate bonds: ECB denies reports shortly thereafter

China beats GDP estimates (7.3%; expected 7.2%), but the reading represents a multi-year low

Apple (AAPL) beats earnings expectations

Consumer discretionary sector pressured by Coca-Cola's (KO) disappointing outlook

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

12:25PM ET
[BRIEFING.COM] Equity indices remain near their recent levels with all ten sectors showing gains. With the stock market starting the week on a higher note, all ten sectors are also positive on the week, but only two groups hold October gains at this juncture.

The utilities sector, which has served as a safe-haven of sorts during recent volatility, is only higher by 0.4% today, but up 3.9% since the end of September. That puts the countercyclical group well ahead of the second-best performer of the month-consumer staples.  

Similar to utilities, the staples sector (+0.2%) is among today's laggards, but the modest uptick has padded its October gain to 0.6%.

On the flip side, the weakest performer of the month-energy-leads today's session with a 2.2% gain, but remains down 5.5% for the month.
Dow: +172.02… | Nasdaq: +77.47… | S&P: +29.78…
NASDAQ Adv/Dec 1924/721. …NYSE Adv/Dec 2501/544.

11:55AM ET
[BRIEFING.COM] The stock market has inched to a fresh high with the S&P 500 extending its gain to 1.5%. Furthermore, today's advance represents the fourth consecutive gain for the benchmark index, which has surged from its October 15 low.

After ending September near the 1972 level, the S&P 500 was down as much as 7.7% for October at its lowest point last Wednesday; however, a steady rally has helped the index narrow its October loss to 2.0%. Meanwhile, the Dow, which has been a laggard so far this week, is still down 2.9% for the month.

Small cap stocks have been a bit more fortunate, but their outperformance follows a disappointing end to September. The Russell 2000 trades up 1.1% today and is higher by 0.5% since the end of September.
Dow: +162.47… | Nasdaq: +72.81… | S&P: +28.00…
NASDAQ Adv/Dec 1917/695. …NYSE Adv/Dec 2469/561.

11:25AM ET
[BRIEFING.COM] Equity indices remain near their best levels of the day with the S&P 500 trading higher by 1.3%.

Five of six cyclical sectors trade ahead of the benchmark index while technology (+1.0%) has yet to catch up as IBM (IBM 162.83, -6.27) continues to weigh. Elsewhere, the materials sector (+1.9%) holds the lead with help from steelmakers after Steel Dynamics (STLD 21.90, +0.80) reported better than expected results. The Market Vectors Steel ETF (SLX 42.45, +0.65) is higher by 1.6%.

Meanwhile, the other commodity-related sector-energy (+1.4%)-remains near its best level of the session, but that gain may be in jeopardy considering crude oil has returned to its flat line. The energy component hovers just above its unchanged level ($81.92/bbl, +0.01) after sliding from a session high in the $83.20 area.
Dow: +114.31… | Nasdaq: +72.24… | S&P: +25.00…
NASDAQ Adv/Dec 1938/659. …NYSE Adv/Dec 2444/550.

10:55AM ET
[BRIEFING.COM] The major averages have built on their early gains with the Nasdaq Composite (+1.6%) pacing the rally. Meanwhile, the S&P 500 follows a bit behind (+1.2%) while the Dow (+0.6%) lags once again.

Yesterday, the price-weighted Dow did not turn positive until the final hour of the session due to significant weakness in the shares of IBM (IBM 162.34, -6.76). The stock trades lower by 4.0% today, which is pressuring the Dow. In addition, Coca-Cola (KO 40.66, -2.63) and McDonald's (MCD 91.17, -0.42) hold respective losses of 6.1% and 0.5%, which has also contributed to the underperformance of the index.

Meanwhile, the remaining 27 Dow components hold gains with Home Depot (HD 93.73, +1.88) in the lead. The stock has been boosted by today's better than expected Existing Home Sales report for September (5.17 million; Briefing.com consensus 5.11 million).
Dow: +100.80… | Nasdaq: +68.20… | S&P: +23.37…
NASDAQ Adv/Dec 1920/606. …NYSE Adv/Dec 2438/548.

10:35AM ET
[BRIEFING.COM]
  • Oil prices are trading higher today, despite strength in the dollar index (+0.4% at 85.27)
  • WTI Dec crude oil rallied after pit trading and rose as high as $83.26/barrel
  • In current trade, Dec crude is +0.5% at $82.32/barrel, while Brent is +0.4% at $85.77/barrel 
  • Nov natural gas sold off in early morning trade and has a morning low of $3.64/MMBtu
  • Nov nat gas is now -0.2% at $3.66/MMBtu
  • Gold and sliver are showing morning strength.
  • Dec gold is now +0.7% at $1252.80/oz, Dec silver +1.3% at $17.59/oz
  • Dec copper is near its session high and is currently +1.1% at $3.02/lb
Dow: +80.40… | Nasdaq: +63.03… | S&P: +21.54…
NASDAQ Adv/Dec 1837/655. …NYSE Adv/Dec 2373/575.

10:00AM ET
[BRIEFING.COM] The S&P 500 trades higher by 0.9%.

Just reported, existing home sales hit an annualized rate of 5.17 million units in September, while the Briefing.com consensus expected a reading of 5.11 million. The pace for September was up from the prior month's unrevised rate of 5.05 million units.
Dow: +62.54… | Nasdaq: +51.17… | S&P: +17.71…
NASDAQ Adv/Dec 1649/700. …NYSE Adv/Dec 2206/639.

09:45AM ET
[BRIEFING.COM] The major averages began the session with broad-based gains that have placed the S&P 500 (+0.8%) back above its 200-day moving average (1906.39) for the first time since October 10. Eight of ten sectors display early gains with energy (+1.6%) in the lead.

The growth-sensitive energy sector has rallied alongside crude oil, which trades higher by 1.4% at $83.02/bbl. The energy component has been able to advance despite a 0.3% uptick in the Dollar Index (85.17, +0.22). Elsewhere among cyclical sectors, materials (+1.1%) and industrials (+1.0%) trade ahead of the broader market while technology (+0.7%) lags.

IBM
(IBM 164.45, -4.68) and Google (GOOGL 531.94, -0.44) are among the early laggards contributing to the underperformance of the sector while Apple (AAPL 102.25, +2.49) trades higher by 2.6% after beating earnings estimates.

Treasuries remain in the red with the 10-yr yield up two basis points at 2.21%.

The Existing Home Sales report for September (Briefing.com consensus 5.11 million) will be released at 10:00 ET.
Dow: +54.57… | Nasdaq: +41.23… | S&P: +16.13…
NASDAQ Adv/Dec 1561/657. …NYSE Adv/Dec 2119/639.

09:12AM ET
[BRIEFING.COM] S&P futures vs fair value: +12.40. Nasdaq futures vs fair value: +44.00. The stock market is on track for a higher open with the S&P 500 futures trading 12 points above fair value. Index futures spiked, and were up as much as 17 points, at the start of the European session after reports from Reuters suggested the European Central Bank will look to begin buying corporate bonds. However, futures on the benchmark index have backtracked to the tune of about eight points after the Financial Times said the ECB has no plans to implement the aforementioned buying program.

Interestingly, futures continue holding gains despite the refuted reports. Corporate news has factored into the pre-market strength with the likes of Apple (AAPL 102.96, +3.20), Texas Instruments (TXN 45.45, +1.04), United Technologies (UTX 103.44, +1.96), and Travelers (TRV 93.62, +0.42) on track to register early gains after reporting better than expected earnings.

On the flip side, Coca-Cola (KO 41.07, -2.21), Lockheed Martin (LMT 170.33, -5.20), McDonald's (MCD 89.90, -1.69), and Verizon (VZ 48.00, -0.48) are on course to begin the session in the red in reaction to disappointing results and/or guidance.

Treasuries are on their lows with the 10-yr yield up almost three basis points at 2.22%.

The Existing Home Sales report for September (Briefing.com consensus 5.11 million) will be released at 10:00 ET.

08:57AM ET
[BRIEFING.COM] S&P futures vs fair value: +12.60. Nasdaq futures vs fair value: +39.20. The S&P 500 futures trade 13 points above fair value.

Markets ended mixed across Asia. China's GDP (7.3%; expected 7.2%) beat expectations, but the reading represented a multi-year low. China's Statistics Bureau said the slowdown in GDP growth resulted from a high base that was set last year, but employment and inflation remained stable. Elsewhere, Japan Prime Minister Shinzo Abe's cabinet has lowered its economic assessment for the second month in a row.
  • In economic data: 
    • China's Q3 GDP rose 1.9% quarter-over-quarter (expected 1.8%; previous 2.0%) while the year-over-year reading increased 7.3% (consensus 7.2%; prior 7.5%). Separately, Industrial Production rose 8.0% year-over-year (expected 7.5%; previous 6.9%), Fixed Asset Investment increased 16.1% year-over-year (consensus 16.3%; prior 16.5%), and Retail Sales climbed 11.6% year-over-year (expected 11.8%; previous 11.9%). 
    • Japan's All Industries Activity Index slipped 0.1% month-over-month (expected -0.3%; previous -0.4%) 
    • Hong Kong's CPI jumped 6.6% year-over-year (expected 3.6%; previous 3.9%), but the number has been declared a one off because of a low base for comparison due to public housing payments. 
------
  • Japan's Nikkei was rejected by the 200-day moving average and lost 2.0% after the minister responsible for Japan's Government Pension Investment Fund suggested he did not know anything about the weekend reports suggesting the fund would increase its equity exposure to 25% from 12%. Exporters outperformed despite the stronger yen as Toyota Motor and Honda Motor lost 1.6% and 1.5%, respectively. 
  • Hong Kong's Hang Seng eked out a small gain of 0.1%, but was unable to reclaim the 200-day moving average. Heavyweight Tencent Holdings provided support, rising 1.0%. 
  • China's Shanghai Composite lost 0.7%, sliding to a one-month low. Pharma was a drag with China Resources Double-Crane Pharmaceutical giving up 5.4%. 
  • India's Sensex rose 0.6% to reclaim the 50-day moving average. IT service providers finished mixed as Wipro climbed 3.0% and Infosys fell 1.0%. 
Major European indices trade higher across the board with Italy's MIB (+2.2%) in the lead. European equities surged after Reuters reported the European Central Bank is seeking to buy corporate bonds on the secondary market. The news weighed on the euro, sending the single currency from 1.2815 into the 1.2750 area against the dollar. However, the news was followed by reports from Financial Times, indicating the ECB has not put corporate bond purchases on its agenda. The euro trimmed a portion of its earlier decline, climbing to 1.2775.

In other news of note, Germany's Finance Minister Wolfgang Schaeuble said France and Germany will present a common position paper on investment and reform in December.
  • Economic data was limited: 
    • Great Britain's Public Sector Net Borrowing came in at GBP11.07 billion (expected GBP9.20 billion; previous GBP10.96 billion) 
    • Swiss trade surplus expanded to CHF2.45 billion from CHF1.33 billion (expected surplus of CHF2.65 billion) 
------
  • Great Britain's FTSE is higher by 1.0% with financials providing leadership. Hargreaves Lansdown, Old Mutual, and Standard Life are all up between 2.4% and 3.1%. ARM Holdings is the weakest performer, down 5.2%. 
  • Germany's DAX has added 1.2% amid broad strength. Commerzbank leads with a gain of 4.2% while K+S and ThyssenKrupp follow not far behind. The two producers of basic materials hold respective gains of 3.5% and 3.1%. 
  • In France, the CAC trades up 1.7% with 39 of 40 names in the green. Growth-sensitive names lead with ArcelorMittal, Cie de St-Gobain, and Lafarge up between 2.1% and 4.5%. Electricite de France is the weakest performer, down 0.6%. 
  • Italy's MIB leads with a gain of 2.2%. Financials have paced the rally with BMPS, Banca di Milano Scarl, UBI Banca, Unicredit, and Intesa Sanpaolo up between 3.3% and 8.9%.

08:29AM ET
[BRIEFING.COM] S&P futures vs fair value: +9.80. Nasdaq futures vs fair value: +32.50. U.S. equity futures continue holding gains, but have slipped from their highs after Financial Times reported that corporate bond buying is not on the ECB's agenda. The recent report contrasted with the early morning headline that sparked a rally in U.S. futures and European markets. The S&P 500 futures have surrendered about seven points in reaction to the news.

The euro perked up in reaction to the Financial Times report, but has since returned near its earlier low (1.2750). Meanwhile, the Dollar Index (85.14, +0.19) continues holding a slim gain of 0.2%.

07:58AM ET
[BRIEFING.COM] S&P futures vs fair value: +14.90. Nasdaq futures vs fair value: +39.50. U.S. equity futures trade sharply higher amid upbeat action overseas. The S&P 500 futures hover 15 points above fair value with the entire gain coming after the start of the European session. The increased risk appetite followed reports indicating the European Central Bank is looking to start buying corporate bonds on the secondary market. The S&P 500 futures have climbed more than 25 points off their lows, putting the benchmark index on track to begin the session above its 200-day moving average (1906.39).

Treasuries hover in the red after erasing their overnight gains. The 10-yr yield is higher by one basis point at 2.21%.

The Existing Home Sales report for September (Briefing.com consensus 5.11 million) will be released at 10:00 ET.

In U.S. corporate news of note:
  • Apple (AAPL 101.69, +1.93): +1.9% after beating earnings/revenue estimates and guiding higher. 
  • Chipotle Mexican Grill (CMG 618.05, -34.98): -5.4% despite beating earnings and revenue expectations. 
  • Coca-Cola (KO 41.90, -1.39): -3.2% after missing revenue estimates and lowering full-year 2014 and 2015 forecast below long term targets. 
  • Lockheed Martin (LMT 173.00, -2.53): -1.4% following its bottom-line beat on below-consensus revenue. 
  • Texas Instruments (TXN 45.40, +0.99): +2.2% in reaction to upbeat results and guidance. 
  • Travelers (TRV 94.50, +1.30): +1.4% after beating earnings estimates. 
  • United Technologies (UTX 103.00, +1.52): +1.5% after reporting a one-cent beat and reaffirming its guidance. 
  • Verizon (VZ 48.33, -0.15): -0.3% after missing bottom-line estimates on in-line revenue. 
Reviewing overnight developments:
  • Asian markets ended mixed. Hong Kong's Hang Seng +0.1%, China's Shanghai Composite -0.7%, and Japan's Nikkei -2.0% 
    • In economic data: 
      • China's Q3 GDP rose 1.9% quarter-over-quarter (expected 1.8%; previous 2.0%) while the year-over-year reading increased 7.3% (consensus 7.2%; prior 7.5%). Separately, Industrial Production rose 8.0% year-over-year (expected 7.5%; previous 6.9%), Fixed Asset Investment increased 16.1% year-over-year (consensus 16.3%; prior 16.5%), and Retail Sales climbed 11.6% year-over-year (expected 11.8%; previous 11.9%). 
      • Japan's All Industries Activity Index slipped 0.1% month-over-month (expected -0.3%; previous -0.4%) 
      • Hong Kong's CPI jumped 6.6% year-over-year (expected 3.6%; previous 3.9%) 
    • In news: 
      • China's Statistics Bureau said the slowdown in GDP growth resulted from a high base that was set last year, but employment and inflation remained stable. 
      • In Japan, Prime Minister Shinzo Abe's cabinet has lowered its economic assessment for the second month in a row. 
  • Major European indices trade higher across the board. Great Britain's FTSE +1.1%, Germany's DAX +1.4%, and France's CAC +1.8%. Elsewhere, Spain's IBEX +2.0% and Italy's MIB +2.2% 
    • Economic data was limited: 
      • Great Britain's Public Sector Net Borrowing came in at GBP11.07 billion (expected GBP9.20 billion; previous GBP10.96 billion) 
      • Swiss trade surplus expanded to CHF2.45 billion from CHF1.33 billion (expected surplus of CHF2.65 billion) 
    • Among news of note: 
      • European equities surged after Reuters reported the European Central Bank is seeking to buy corporate bonds on the secondary market. The news weighed on the euro, sending the single currency from 1.2815 into the 1.2750 area against the dollar. 
      • Germany's Finance Minister Wolfgang Schaeuble said France and Germany will present a common position paper on investment and reform in December.

06:30AM ET
[BRIEFING.COM] S&P futures vs fair value: +12.00. Nasdaq futures vs fair value: +27.00.

06:32AM ET
[BRIEFING.COM] Nikkei...14,804.28...-307.00...-2.00%.  Hang Seng...23,088.58...+18.30...+0.10%.

06:32AM ET
[BRIEFING.COM] FTSE...6,323.75...+56.70...+0.90%.  DAX...8,847.07...+132.30...+1.50%.

04:10PM ET
[BRIEFING.COM] Equity indices finished the first session of the week near their highs with the Nasdaq Composite (+1.4%) leading the way. The S&P 500 (+0.9%) settled a bit behind the tech-heavy index while the Dow Jones Industrial Average (+0.1%) struggled to turn positive.

The price-weighted Dow spent the bulk of the session in the red as IBM (IBM 169.10, -12.95) weighed. The stock fell 7.1% and surrendered its standing as the second-largest Dow component after reporting disappointing results that featured revenue declines across all key segments and all geographic regions in which the company operates.

Despite IBM's miss, the technology sector kept pace with the broader market, thanks in part to the relative strength of Apple (AAPL 99.76, +2.09). The top-weighted sector component jumped 2.1% ahead of its earnings report. Similarly, chipmakers also contributed to the advance with the PHLX Semiconductor Index climbing 1.5%.

The outperformance of microchip manufacturers gave a boost to the Nasdaq Composite, which also benefited from strength in the biotech space. The iShares Nasdaq Biotechnology ETF (IBB 269.57, +4.20) spiked 1.6% while the health care sector (+1.2%) finished among the outperformers. Similarly, two other countercyclical sectors-consumer staples (+1.4%) and utilities (+1.4%)-displayed relative strength, while the telecom services space (+0.8%) ended a bit behind the S&P 500.

Also of note, the energy sector (+0.8%) was able to settle in the green even as crude oil slipped 0.1% to $81.97/bbl. Halliburton (HAL 52.92, +0.32) underpinned the sector, climbing 0.6%, in reaction to better than expected earnings and revenue.

Elsewhere, industrials (+0.3%) registered a slim gain, but the sector was weighed down by defense contractors with the PHLX Defense Index shedding 0.1%. Meanwhile, transport stocks fared well with the Dow Jones Transportation Average rising 1.0%. Airlines led the way with United Continental (UAL 47.29, +2.61) spiking 5.8%.

Treasuries registered modest gains with the 10-yr yield slipping one basis point to 2.18%.

Today's participation was largely in-line with average as 723 million shares changed hands at the NYSE floor.

Investors did not receive any economic news today and tomorrow's data will be limited to the Existing Home Sales report for September (Briefing.com consensus 5.11 million), which will be released at 10:00 ET.
  • Nasdaq Composite +3.3% YTD 
  • S&P 500 +3.0% YTD 
  • Dow Jones Industrial Average -1.1% YTD 
  • Russell 2000 -5.8% YTD
Dow: +19.26… | Nasdaq: +57.64… | S&P: +17.25…
NASDAQ Adv/Dec 2030/854. …NYSE Adv/Dec 2294/814.

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