Updated: 10-24-2014

The Market at 04:10PM ET
Dow: +127.51… | Nasdaq: +30.92… | S&P: +13.76…
NASDAQ Vol: 1.63 bln… Adv: 1560… Dec: 1161…
NYSE Vol: 699.4 mln… Adv: 1912… Dec: 1160…

Moving the Market

China's House Prices slide 1.3% year-over-year with monthly declines reported in all 70 cities

Bloomberg TV reports 25 banks are set to fail the ECB stress test, which will be released on Sunday

Positive Ebola test in New York City; NIH confirms Dallas nurse Nina Pham free of Ebola virus

S&P 500 enters Friday session with week-to-date gain of 3.4%

Sector Watch
Strong: Consumer Staples, Financials, Health Care, Technology, Utilities
Weak: Consumer Discretionary, Energy, Materials

04:10PM ET
[BRIEFING.COM] The major averages capped a strong week with a rally that sent the S&P 500 higher by 0.7%. The benchmark index gained 4.1% for the week while the Nasdaq Composite (+0.7%) extended its weekly advance to 5.3%.

Equity indices endured a shaky start with a handful of concerns factoring into the cautious posture in the early going:
  • Contagion concerns stemming from news that a New York doctor who exhibited Ebola-like symptoms yesterday tested positive for the disease 
  • Disappointing economic data from China that revealed a 1.3% year-over-year drop in New Home Sales and featured monthly declines in all 70 cities, and 
  • Below-consensus results from Amazon.com (AMZN 287.06, -26.12) 
After spinning their wheels through the opening hour, the key indices were able to pull away from their flat lines with help from influential sectors. In addition, investor sentiment was boosted by news from the National Institute of Health indicating Dallas Presbyterian nurse Nina Pham has recovered from Ebola.

Coincidentally, the health care sector (+1.4%) settled in the lead with significant support from Bristol-Myers (BMY 53.63, +1.13) and Shire (SHPG 194.49, +9.51). The two names posted respective gains of 2.2% and 5.1% in reaction to upbeat quarterly results while the iShares Nasdaq Biotechnology ETF (IBB 288.77, +5.15) jumped 1.8%.

Similar to health care, the remaining three countercyclical sectors ended ahead of the broader market with gains between 0.8% and 1.0%.

Meanwhile, the cyclical groups ended in mixed fashion with respect to the S&P 500. Financials (+0.9%) and industrials (+0.9%) outperformed, while consumer discretionary (-0.1%) and energy (-0.3%) lagged.

The consumer discretionary sector was pressured by an 8.3% loss in the shares of Amazon.com while also enduring weakness among carmakers. Ford (F 13.78, -0.62) lost 4.3% after surpassing bottom-line estimates on below-consensus revenue. On the flip side, media names and restaurant stocks displayed relative strength.

For its part, the energy sector stumbled in the morning amid weakness in crude oil. The energy component climbed off its worst level of the day, but still ended lower by 1.2% at $81.03/bbl.

Also of note, the technology sector (+0.8%) traded in-line with the market for the bulk of the session before joining the leaders in the afternoon. Dow component Microsoft (MSFT 46.13, +1.11) advanced 2.5% after beating earnings and revenue estimates while chipmakers drew strength from KLA-Tencor (KLAC 75.90, +4.90). The stock soared 6.9% in reaction to in-line results, combined with a special dividend of $16.50 and an increased buyback program. The broader PHLX Semiconductor Index rose 1.1%.

Treasuries ended flat after sliding from their overnight highs. The 10-yr yield ended at 2.27%.

Participation was roughly in-line with long-term averages as 700 million shares changed hands at the NYSE floor.

Economic data was limited to the New Home Sales report for September, which revealed a 0.2% increase to 467,000 from a revised rate of 466,000 (from 504,000). However, that was below the Briefing.com consensus, which expected a reading of 475,000. Most notably, the large downward revision to the August figures took away what had been the strongest monthly reading since May 2008.
  • Prices for new homes fell 4.0% year-over-year, which was the first such decline since April and the largest drop since a 7.7% tumble in January 2012. 
Monday's data will be limited to the 10:00 ET release of the Pending Home Sales report for September (Briefing.com consensus 0.5%).
  • Nasdaq Composite +7.4% YTD 
  • S&P 500 +6.3% YTD 
  • Dow Jones Industrial Average +1.4% YTD 
  • Russell 2000 -3.8% YTD 
Week in Review: Stocks Rebound From Recent Slide

Equity indices finished the Monday session 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) 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). The top-weighted sector component jumped 2.1% ahead of its earnings report. Similarly, chipmakers contributed to the advance with the PHLX Semiconductor Index climbing 1.5%.

The market enjoyed another broad-based advance on Tuesday with the S&P 500 (+2.0%) posting its fourth consecutive gain. The benchmark index made its biggest jump in more than a year and recaptured its 200-day moving average (1906.95) while the Nasdaq Composite (+2.4%) outperformed throughout the session. Equities began on an upbeat note with a set of better than expected results contributing to the early strength. However, the futures market received a separate overnight boost from a Reuters report suggesting the European Central Bank will look to begin buying corporate bonds. That report was followed by headlines from the Financial Times indicating the ECB has no plans to implement the aforementioned buying program at this time. The denial did not stop European equities from ending on their highs while the U.S. market built on its early strength throughout the day. For the second day in a row, the Dow Jones Industrial Average (+1.3%) could not keep pace with the broader market, which was once again due in part to the relative weakness in the shares of IBM. The third-largest index component lost 3.5% while only two other Dow members finished in the red. To that point, Coca-Cola (KO) and McDonald's (MCD) registered respective losses of 6.0% and 0.6% in reaction to cautious guidance from both consumer companies.

The stock market ended the midweek session on a lower note, causing the S&P 500 (-0.7%) to snap its four-day winning streak. The benchmark index slumped into the red during afternoon action while the Dow Jones Industrial Average (-0.9%) underperformed once again. Stocks displayed modest gains in the early going, but that advance took place despite the lack of concerted leadership. The underperformance of several influential sectors weighed on the market and led to a midsession retreat. Five of six cyclical sectors ended behind the broader market with energy (-1.7%) showing the largest decline. The growth-sensitive sector displayed intraday strength, but slumped in the afternoon amid weakness in crude oil. The energy component spent the morning near its flat line, but plunged in the afternoon to end lower by 2.4% at $80.49/bbl. Greenback strength acted as a bit of a headwind with the Dollar Index (85.75, +0.45) rising 0.5%.

Equities finished the Thursday session with solid gains. The Russell 2000 (+1.8%) led the way while the S&P 500 settled higher by 1.2% with eight sectors in the green. The key indices surged at the start of the trading day after the overnight session featured upbeat economic data from overseas. On that note, Manufacturing PMI readings from China, Japan, and the Eurozone surpassed estimates, but the headline figures masked some weakness below the surface. For instance, China's HSBC Manufacturing PMI (50.4; expected 50.3) came in ahead of estimates, but the output and employment indices contracted. Additionally, a set of better than expected quarterly results from several large cap names also provided a measure of support.
Dow: +127.51… | Nasdaq: +30.92… | S&P: +13.76…
NASDAQ Adv/Dec 1560/1161. …NYSE Adv/Dec 1912/1160.

03:35PM ET
[BRIEFING.COM]
  • Energy futures displayed weakness again today, but recovered some before the session ended
  • WTI crude oil ran back above $81/barrel, closing -$1.02 to $81.03/barrel
  • Natural gas recovered all of its losses, coming back from $3.56/MMBtu
  • Gold and silver rose very modestly on the day, while copper ended flat
  • Grains lost some ground today (corn, wheat, soybeans)
Dow: +109.21… | Nasdaq: +25.75… | S&P: +11.01…
NASDAQ Adv/Dec 1433/1236. …NYSE Adv/Dec 1808/1245.

02:55PM ET
[BRIEFING.COM] The S&P 500 (+0.6%) sits on its best level of the day with one hour remaining in the final session of the week.

Investors received the first heavy batch of Q3 earnings over the course of this week with another full slate scheduled for next week. On Monday morning, Merck (MRK 57.24, +0.61) and Seagate (STX 58.02, +1.51) will headline the list of reporting companies while the afternoon will feature results from Amgen (AMGN 146.43, -0.82), Cliffs Natural Resources (CLF 9.36, +0.57), and Buffalo Wild Wings (BWLD 134.86, +5.86).
Dow: +108.28… | Nasdaq: +18.10… | S&P: +10.58…
NASDAQ Adv/Dec 1410/1282. …NYSE Adv/Dec 1780/1260.

02:30PM ET
[BRIEFING.COM] The S&P 500 (+0.5%) has returned into the neighborhood of its early afternoon high while the Russell 2000 sits right on its flat line.

This week was very quiet on the economic front, but a few more economic reports will be released next week. Monday's data will be limited to the 10:00 ET release of the Pending Home Sales report for September, while the October Consumer Confidence Index will be released on Tuesday at 10:00 ET.

On Wednesday afternoon, investors will receive the latest policy directive from the FOMC, which is expected to call for a $15 billion taper that will effectively end the asset purchasing program. For more insight on the end of QE, take a look at this week's The Big Picture column that was published on Briefing.com earlier today.
Dow: +102.79… | Nasdaq: +19.97… | S&P: +10.02…
NASDAQ Adv/Dec 1409/1268. …NYSE Adv/Dec 1747/1276.

01:55PM ET
[BRIEFING.COM] The major averages continue holding gains with the S&P 500 higher by 0.4%. Today's advance puts the benchmark index on track to finish the week higher by 3.9%. Furthermore, that sharp rally has narrowed the S&P 500's October loss to 0.6% with just one more week remaining in the month.

Although the benchmark index has enjoyed a strong week, the tech-heavy Nasdaq has fared even better. The index is higher by 5.0% this week, which has trimmed its October loss to 0.5%.

All ten sectors are on course to register weekly gains with health care in the lead. The countercyclical group has surged 6.3% this week. On the flip side, the telecom services sector has only added 0.6% since last Friday.
Dow: +86.25… | Nasdaq: +18.49… | S&P: +8.57…
NASDAQ Adv/Dec 1414/1247. …NYSE Adv/Dec 1718/1284.

01:25PM ET
[BRIEFING.COM] Early buying efforts have faded in early-afternoon trading, knocking the indices back from session highs reached around 12:20 p.m. ET.

All things considered, the stock market has performed admirably today, responding stronger it seems to an NIH report that Dallas nurse Nina Pham is free of the Ebola virus than to a report that a New York doctor tested positive for Ebola.  Ms. Pham's recovery is a tangible marker that the virus can be treated successfully and has thus helped keep in check contagion concerns that were running wild a few weeks ago.

Separately, the ECB will release the results from its bank stress tests on Sunday.  The potential for increased volatility after they are published, and the recognition that the major indices have logged big percentage gains this week, might be factoring into decisions to take some money of the table going into the weekend.

Strikingly, the CBOE Volatility Index (16.73, +0.20) and the 10-yr note (+4/32) are up right now along with stock prices.  


Dow: +59.02… | Nasdaq: +8.44… | S&P: +4.66…
NASDAQ Adv/Dec 1301/1330. …NYSE Adv/Dec 1612/1392.

12:55PM ET
[BRIEFING.COM] The major averages hold modest midday gains with the S&P 500 higher by 0.3% while the Nasdaq (+0.2%) follows right behind.

The first half of the Friday session has consisted of a shaky start that was followed by a rally to fresh highs. Overnight news contributed to a cautious open with China reporting another decline in New Home Prices and separate headlines indicating the New York doctor who was rushed to a hospital with Ebola-like symptoms tested positive for the disease. On a related note, the National Institute of Health said Dallas Presbyterian nurse Nina Pham has recovered from Ebola.

During the past 45 minutes, the S&P 500 marked a session high just north of its 100-day average (1961.81) and currently trades within four points of that level.

Eight sectors hold midday gains while the two decliners-consumer discretionary (-0.4%) and energy (-0.6%)-have narrowed their early losses. The energy sector was down in excess of 1.0% during the opening hour with crude factoring into the weakness. Similar to the sector, oil has climbed off its low, but remains down 1.1% at $81.18/bbl.

For its part, the consumer discretionary sector has been pressured by disappointing results from Amazon.com (AMZN 288.16, -25.00). The stock trades lower by 7.9% and has contributed to the underperformance of the Nasdaq.

However, the tech-heavy index has been able to overcome the bulk of the weakness with help from chipmakers and biotechnology. The PHLX Semiconductor Index has added 0.9% while the technology sector trades in-line with the S&P 500. KLA-Tencor (KLAC 75.62, +4.62) has been a standout in the microchip space after reporting in-line results, combined with a special dividend of $16.50 and an increased buyback program.

Elsewhere, the iShares Nasdaq Biotechnology ETF (IBB 286.68, +3.06) is higher by 1.1% while the health care sector (+0.9%) leads following upbeat results from Bristol-Myers (BMY 53.48, +0.98) and Shire (SHPG 195.00, +10.02).

Treasuries hold slim gains after slipping from their highs. The 10-yr yield is lower by one basis point at 2.26%.

Economic data was limited to the New Home Sales report for September, which revealed a 0.2% increase to 467,000 from a revised rate of 466,000 (from 504,000). However, that was below the Briefing.com consensus, which expected a reading of 475,000. Most notably, the large downward revision to the August figures took away what had been the strongest monthly reading since May 2008.
  • Prices for new homes fell 4.0% year-over-year, which was the first such decline since April and the largest drop since a 7.7% tumble in January 2012
Dow: +71.37… | Nasdaq: +10.53… | S&P: +6.22…
NASDAQ Adv/Dec 1289/1317. …NYSE Adv/Dec 1625/1378.

12:30PM ET
[BRIEFING.COM] The S&P 500 trades higher by 0.5% while the Nasdaq Composite (+0.4%) follows right behind.

The Nasdaq has trailed the benchmark index since the opening bell due to a 7.5% decline in the shares of Amazon.com (AMZN 289.80, -23.38) after the online retailer reported disappointing results.

For the most part, Amazon.com's weakness has been masked by strength in high-beta areas like chipmakers and biotechnology. The PHLX Semiconductor Index is higher by 1.1% with all but five index components showing gains. Meanwhile, the iShares Nasdaq Biotechnology ETF (IBB 287.54, +3.92) trades up 1.4%.
Dow: +89.37… | Nasdaq: +17.34… | S&P: +9.64…
NASDAQ Adv/Dec 1360/1237. …NYSE Adv/Dec 1711/1254.

11:55AM ET
[BRIEFING.COM] The Dow (+0.5%), Nasdaq (+0.4%), and S&P 500 (+0.5%) have extended to fresh highs while the Russell 2000 (-0.1%) remains in negative territory.

The price-weighted Dow could not keep pace with the S&P 500 during the first three sessions of the week, but the index has traded in-line or ahead of the benchmark index since yesterday. Today, only five components hover in the red with losses of no more than 0.4%. Payment processor Visa (V 213.38, -0.90) is the weakest performer while seven index members show gains of at least 1.0%. Procter & Gamble (PG 85.73, +2.50) has provided a measure of support, trading higher by 3.0% after reporting in-line results and reaffirming its guidance.

Also of note, Treasuries have surrendered all of their gains, sending the benchmark yield back to unchanged on the session (2.27%).
Dow: +86.89… | Nasdaq: +17.73… | S&P: +8.79…
NASDAQ Adv/Dec 1297/1266. …NYSE Adv/Dec 1632/1317.

11:25AM ET
[BRIEFING.COM] The S&P 500 (+0.3%) continues holding a modest gain with eight sectors trading in positive territory.

The health care sector (+1.0%) has shown significant strength since the early going thanks to better than expected earnings from Bristol-Myers (BMY 53.92, +1.42) and Shire (SHPG 195.68, +10.70). Meanwhile, the iShares Nasdaq Biotechnology ETF (IBB 287.66, +4.04) trades up 1.4% and is on track for its third consecutive gain that has placed it at a fresh all-time high.

Similarly, the remaining three countercyclical groups-consumer staples (+0.6%), telecom services (+0.9%), and utilities (+0.7%)-all trade ahead of the broader market.

Elsewhere, Treasuries have retreated to their lows with the 10-yr yield at 2.27 (-1 bp).
Dow: +59.38… | Nasdaq: +14.40… | S&P: +6.85…
NASDAQ Adv/Dec 1263/1265. …NYSE Adv/Dec 1515/1397.

10:55AM ET
[BRIEFING.COM] The Dow, Nasdaq, and S&P 500 continue holding slim gains of no more than 0.3% while the Russell 2000 (-0.1%) lags.

Equity indices rallied at the start, but were pressured from their early highs by significant weakness in the energy sector (-1.2%). The cyclical group opened among the laggards and was in the midst of a rebound when renewed selling in crude oil pressured the sector to a fresh low. The energy component is lower by 2.0% at $80.47/bbl.

Energy notwithstanding, the discretionary sector (-0.3%) also continues weighing on the broader market while other influential sectors are mixed. Financials (+0.5%), health care (+0.9%), and technology (+0.3%) outperform while industrials trade in-line with the S&P 500.
Dow: +44.53… | Nasdaq: +12.93… | S&P: +4.45…
NASDAQ Adv/Dec 1270/1195. …NYSE Adv/Dec 1445/1437.

10:35AM ET
[BRIEFING.COM]
  • Oil prices are taking a hit again today
  • WTI crude oil (U.S. benchmark) just hit another new low for the day at $80.43/barrel
  • WTI Dec crude now trades at $80.57/barrel, down 1.9%.
  • Brent crude (international benchmark) is at -1.4% at $85.64/barrel, also near its low for the day
  • Energy futures are in the red overall today (oil, nat gas, heating oil, RBOB gasoline)
  • Nov nat gas is currently -1.6% at $3.56/MMBtu, heating oil -1.6% at $2.45/gallon, RBOB -1.3% at $2.14/gallon
  • Copper is flat this morning, while precious metals are showing some gains
  • Dec gold is +0.3% at $1232.20/oz, Dec silver +0.7% at $17.28/oz
Dow: +40.14… | Nasdaq: +15.17… | S&P: +3.85…
NASDAQ Adv/Dec 1327/1133. …NYSE Adv/Dec 1427/1399.

10:00AM ET
[BRIEFING.COM] The S&P 500 (+0.1%) has slipped back near its flat line while the Nasdaq Composite (+0.2%) trades a little ahead.

Just released, new home sales in September hit an annualized rate of 467,000, which was up from the revised August rate of 466,000 (from 504,000), but worse than the rate of 475,000 that had been broadly expected by the Briefing.com consensus.
Dow: +26.91… | Nasdaq: +7.35… | S&P: +1.95…
NASDAQ Adv/Dec 1282/1004. …NYSE Adv/Dec 1399/1350.

09:40AM ET
[BRIEFING.COM] The S&P 500 began the Friday session near its flat line, but has pulled away from that level and now trades higher by 0.3%.

The consumer discretionary sector (-0.5%) weighs due to a 7.4% loss in the shares of Amazon.com (AMZN 289.28, -23.88), which reported disappointing results.

Elsewhere, the energy sector (-0.3%) lags amid weakness in crude oil. The energy component has surrendered 1.4% and currently trades at $80.93/bbl.

On the upside, the health care sector (+0.8%) leads with help from Shire (SHPG 194.88, +9.90). The drug maker has added 5.4% in reaction to upbeat results. Elsewhere, the tech sector (+0.4%) has received support from Microsoft (MSFT 45.80, +0.78). The Dow component is higher by 1.7% after beating earnings and revenue estimates.

The New Home Sales report (Briefing.com consensus 475,000) will be released at 10:00 ET.
Dow: +50.93… | Nasdaq: +12.48… | S&P: +6.04…
NASDAQ Adv/Dec 1309/860. …NYSE Adv/Dec 1590/1097.

09:13AM ET
[BRIEFING.COM] S&P futures vs fair value: -0.10. Nasdaq futures vs fair value: -1.50. The stock market is on track for a flat open with the S&P 500 futures trading within a point of fair value. Index futures dipped last evening after Amazon.com (AMZN 283.75, -29.43) reported disappointing results for the third quarter and then extended their retreat when it was reported that the doctor who was rushed to a New York hospital with Ebola-like symptoms tested positive for the disease.

Index futures have been able to pull away from their lows, but disappointing economic data has contributed to the cautious posture. On that note, China reported a 1.3% year-over-year decline in New Home Prices with all 70 cities showing monthly retreats.

Meanwhile in Europe, the European Central Bank is scheduled to release the results of its stress test on Sunday, but a recent Bloomberg TV report suggested 25 banks are on course to fail the test.

On the earnings front, results from companies not named Amazon.com have been mostly better than expected. To that point, Ford Motor (F 14.54, +0.14), Shire (SHPG 193.05, +8.07), Microsoft (MSFT 47.08, +2.06), and UPS (UPS 102.75, +2.27) are on track to register early gains after beating earnings estimates.

Treasuries hold modest gains with the 10-yr yield down one basis point at 2.26%.

09:01AM ET
[BRIEFING.COM] S&P futures vs fair value: -0.60. Nasdaq futures vs fair value: -1.00. The S&P 500 futures trade within a point of fair value.

Asian markets ended mostly lower
  • In economic data: 
    • China's House Prices fell 1.3% year-over-year (previous 0.5%) 
    • South Korea's GDP rose 0.9% quarter-over-quarter, as expected, while the year-over-year reading increased 3.2% (consensus 3.3%; previous 3.5%) 
    • New Zealand's trade deficit widened to $1.35 billion from $472 million (expected deficit of $700 million) 
    • Singapore's Industrial Production fell 3.3% month-over-month (consensus -0.8%; previous -0.4%) while the year-over-year reading declined 1.2% (expected 0.1%; prior 4.0%) 
------
  • Japan's Nikkei gained 1.0% and outperformed the region amid broad strength. Growth-sensitive names led with Toho Zinc, Kubota, and Sumitomo Osaka Cement up between 2.7% and 5.6%. 
  • Hong Kong's Hang Seng shed 0.1%, lagging amid weakness in property developers. China Resources Land, Henderson Land Development, and China Overseas Land surrendered between 0.9% and 1.7%. 
  • China's Shanghai Composite ended flat. Great Wall Motor tumbled 6.7% while China Television Media gained 9.3%. 
  • India's Sensex remained closed for Diwali. 
Major European indices trade mostly lower with Germany's DAX (-0.6%) showing the largest loss. The European Central Bank is expected to release the results of its stress test on Sunday around 4 AM ET with Vitor Constancio's follow up press conference scheduled 30 minutes after the release. To that point, a recent report from Bloomberg TV indicated ECB draft documents showed 25 banks are set to fail the test while ten are 'in negotiations.'
  • Economic data was limited: 
    • Germany's GfK Consumer Climate ticked up to 8.5 from 8.4 (expected 8.0) 
    • Great Britain's Q3 GDP rose 0.7% quarter-over-quarter and 3.0% year-over-year. Both figures matched expectations. Separately, Index of Services increased 0.8% (consensus 0.9%; previous 1.0%) 
    • Italy's Consumer Confidence slipped to 101.4 from 101.9 (expected 101.5) while Retail Sales fell 3.1% year-over-year (forecast -0.9%; prior -1.7%) 
    • Spain's PPI slipped 0.3% year-over-year (expected 0.0%; previous -0.6%) 
------
  • Germany's DAX is lower by 0.6% with chemical manufacturers on the defensive. BASF and K+S hold respective losses of 4.0% and 1.6%. On the upside, Deutsche Telekom is higher by 2.3%. 
  • In France, the CAC trades down 0.6% with Kering showing the largest loss. The stock has surrendered 4.4% after its Gucci brand saw a 1.6% decline in sales. Orange outperforms with a gain of 1.3%. 
  • Great Britain's FTSE has given up 0.5% with energy names pressuring the index. BP and Tullow Oil are lower by 1.3% and 2.0%, respectively. Shire outperforms with a gain of 3.1% after reporting upbeat earnings.

08:26AM ET
[BRIEFING.COM] S&P futures vs fair value: -1.10. Nasdaq futures vs fair value: -6.80. U.S. equity futures continue hovering in the red while Treasuries sit just below their highs with the 10-yr yield down three basis points at 2.24%.

The benchmark yield has climbed steadily over the past three days, but the current standing suggests a pullback may take place today. Treasuries strengthened overnight after the doctor in New York who was suspected of having Ebola tested positive for the disease. Furthermore, disappointing housing data from China (House Prices -1.3% year-over-year) has also contributed to the defensive trade.

07:56AM ET
[BRIEFING.COM] S&P futures vs fair value: -5.10. Nasdaq futures vs fair value: -13.80. U.S. equity futures trade modestly lower amid cautious action overseas. The S&P 500 futures hover five points below fair value after spending the night in negative territory. Last evening, futures began feeling pressure after Amazon.com (AMZN 282.70, -30.48) reported disappointing results for the quarter and lowered its guidance. Index futures took another leg lower a little later when it was reported that the New York doctor who was hospitalized yesterday with symptoms of Ebola does indeed have the disease.

It is worth mentioning that the overnight pullback took place after a big surge earlier in the week that has the S&P 500 entering the Friday session with a week-to-date gain of 3.4%. Meanwhile, the tech-heavy Nasdaq has added 4.6% since last Friday.

Treasuries hover near their highs with the 10-yr yield down three basis points at 2.24%.

In U.S. corporate news of note:
  • Ford Motor (F 14.40, 0.00): flat after beating bottom-line estimates on light revenue. 
  • Juniper Networks (JNPR 20.74, +0.42): +2.1% after its one-cent beat overshadowed below-consensus guidance for the current quarter. 
  • KLA-Tencor (KLAC 78.88, +7.88): +11.1% following its revenue beat and the announcement of a leveraged capital return plan. 
  • Microsoft (MSFT 46.30, +1.28): +2.8% after beating earnings and revenue estimates. 
  • Pandora Media (P 21.36, -1.76): -7.6% despite reporting a one-cent beat. 
  • Procter & Gamble (PG 84.51, +1.28): +1.5% in reaction to in-line results. 
  • Shire (SHPG 192.82, +7.84): +4.2% after reporting better than expected revenue. 
Economic data will be limited to the New Home Sales report (Briefing.com consensus 475,000), which will be released at 10:00 ET.

Reviewing overnight developments:
  • Asian markets ended mixed. Japan's Nikkei +1.0%, Hong Kong's Hang Seng -0.1%, and China's Shanghai Composite closed flat 
    • In economic data: 
      • China's House Prices fell 1.3% year-over-year (previous 0.5%) 
      • South Korea's GDP rose 0.9% quarter-over-quarter, as expected, while the year-over-year reading increased 3.2% (consensus 3.3%; previous 3.5%) 
      • New Zealand's trade deficit widened to $1.35 billion from $472 million (expected deficit of $700 million) 
      • Singapore's Industrial Production fell 3.3% month-over-month (consensus -0.8%; previous -0.4%) while the year-over-year reading declined 1.2% (expected 0.1%; prior 4.0%) 
    • In news: 
      • Concerns regarding China's housing market returned to the forefront after the latest housing report revealed month-over-month declines in price in all 70 cities. On a year-over-year basis, only 10 out of 70 cities reported an increase.
  • Major European indices trade mostly lower. Great Britain's FTSE -0.4%, Germany's DAX -0.6%, and France's CAC -0.6%. Elsewhere, Italy's MIB +0.1% and Spain's IBEX -0.1%
    • Economic data was limited: 
      • Germany's GfK Consumer Climate ticked up to 8.5 from 8.4 (expected 8.0) 
      • Great Britain's Q3 GDP rose 0.7% quarter-over-quarter and 3.0% year-over-year. Both figures matched expectations. Separately, Index of Services increased 0.8% (consensus 0.9%; previous 1.0%) 
      • Italy's Consumer Confidence slipped to 101.4 from 101.9 (expected 101.5) while Retail Sales fell 3.1% year-over-year (forecast -0.9%; prior -1.7%) 
      • Spain's PPI slipped 0.3% year-over-year (expected 0.0%; previous -0.6%) 
    • Among news of note: 
      • The European Central Bank is expected to release the results of its stress test on Sunday around 4 AM ET with Vitor Constancio's follow up press conference scheduled 30 minutes after the release.

07:00AM ET
[BRIEFING.COM] S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -13.00.

07:00AM ET
[BRIEFING.COM] Nikkei...15,291.64...+152.70...+1.00%.  Hang Seng...23,302.20...-31.00...-0.10%.

07:00AM ET
[BRIEFING.COM] FTSE...6,396.60...-22.50...-0.40%.  DAX...9,013.91...-33.60...-0.40%.

04:15PM ET
[BRIEFING.COM] The stock market ended the Thursday session with solid gains. The Russell 2000 (+1.8%) led the way while the S&P 500 settled higher by 1.2% with eight sectors in the green.

The key indices surged at the start of the trading day after the overnight session featured upbeat economic data from overseas. On that note, Manufacturing PMI readings from China, Japan, and the Eurozone surpassed estimates, but the headline figures masked some weakness below the surface. For instance, China's HSBC Manufacturing PMI (50.4; expected 50.3) came in ahead of estimates, but the output and employment indices contracted.

Additionally, a set of better than expected quarterly results from several large cap names also provided a measure of support. However, stocks fell from their highs during the final 90 minutes of the action amid reports indicating a doctor, who treated Ebola patients in Africa, was rushed to Bellevue Hospital in New York. In all likelihood, the ten-point slip from highs reflected selling by weak-handed longs that entered the market during the recent rally.

For the first time this week, the Dow Jones Industrial Average (+1.3%) was able to settle ahead of the S&P 500 with help from 3M (MMM 145.05, +6.10) and Caterpillar (CAT 99.27, +4.70). The two names reported better than expected results and surged 4.4% and 5.0%, respectively. However, it is worth noting the better than expected results and guidance were primarily a by-product of cost cutting and deft management rather than robust demand. To wit, Caterpillar's revenues were up just 0.9% year-over-year while 3M's revenues were up just 2.8%, yet those two companies reported EPS increases of 12% and 11%, respectively.

The two Dow leaders underpinned the industrial sector (+2.2%), which spent the entire session atop the leaderboard. Transport stocks went along for the ride with the Dow Jones Transportation Average climbing 2.1%. GATX (GMT 60.63, +3.51) spiked 6.1% and had the best showing after its better than expected revenue overshadowed below-consensus earnings. On the downside, JetBlue Airways (JBLU 10.86, -0.32) lost 2.9% after missing bottom-line estimates.

Elsewhere, the energy sector (+1.8%) followed not far behind with help from crude oil. The energy component also climbed 1.8% to $82.01/bbl.

Meanwhile, the other commodity-related sector-materials (unch)-spent the day near its flat line. Fertilizer stocks lagged after Potash (POT 32.54, -0.24) reported disappointing results. Miners lagged in the early going, but the Market Vectors Gold Miners ETF (GDX 20.56, +0.12) turned positive by the close to end higher by 0.6%.

On the countercyclical side, the health care sector (+1.8%) was the only group that was able to outpace the market while consumer staples (-0.1%), telecom services (-1.2%), and utilities (+0.2%) lagged. Health care drew strength from biotechnology after Celgene (CELG 100.40, +5.64) reported strong results while the telecom sector was pressured by AT&T (T 33.66, -0.84), which fell 2.4% in reaction to a one-cent miss.

Treasuries retreated throughout the day and spent the final hour of the action just above their lows. The 10-yr yield rose six basis points to 2.28%.

Today's participation was ahead of average with more than 796 million shares changing hands at the NYSE floor.

Economic data was limited to Initial Claims, FHFA Housing Price Index, and Leading Indicators:
  • Weekly initial claims increased to 283,000 from a revised rate of 266,000 (from 264,000), while the Briefing.com consensus expected a reading of 285,000 
    • Although the increase appears relatively large at first glance, it is worth noting last week's reading represented a 14-year low 
  • The August Housing Price Index from the FHFA rose 0.5%, which followed a revised increase of 0.2% (from 0.1%) observed during the prior month 
  • September Leading Indicators increased 0.8% after a revised unchanged reading in August (from +0.2%), while the Briefing.com consensus expected an increase of 0.5%
Tomorrow's data will be limited to the New Home Sales report (Briefing.com consensus 475,000), which will be released at 10:00 ET.
  • Nasdaq Composite +6.6% YTD 
  • S&P 500 +5.5% YTD 
  • Dow Jones Industrial Average +0.6% YTD 
  • Russell 2000 -4.1% YTD
Dow: +216.58… | Nasdaq: +69.95… | S&P: +23.71…
NASDAQ Adv/Dec 2178/742. …NYSE Adv/Dec 2415/702.

Copyright © 2008 Briefing.com, Inc. All rights reserved.
Sponsor Center
Sponsored Links
Buy a Link Now
Content Partners