Market Summary
from Briefing.comIndustry Watch
Strong:
Weak:
Market Moving Factors
- Disappointing earnings/guidance from Caterpillar (CAT), DuPont (DD), Microsoft (MSFT), Pfizer (PFE), Procter & Gamble (PG), and United Technologies (UTX)
[BRIEFING.COM] The stock market began the new 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.
Because of the incoming storm, a State of Emergency was already declared in Connecticut, New York, New Jersey, and Massachusetts, while the New York Stock Exchange announced plans to open and operate as usual on Tuesday. The NYSE operated as usual today, but that did not stop some participants from sitting the session out. Intraday volume was light, but a surge in late-afternoon activity brought the final tally (780 million) relatively close to the 50-day average (803 million).
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 Yanis Varoufakis, who is expected to be named finance minister, saying a euro exit is not in the plans and that talks of a ‘Grexit' should not be sensationalized.
Equity futures retreated at the Sunday open while the euro tested the 1.1100 level before bouncing into the 1.1250 area where it spent the bulk of the day. Similarly, equity futures erased the bulk of their losses ahead of the cash open.
The S&P 500 dipped below its 50-day moving average (2,047) in the early going, but the index found itself back above that level shortly thereafter. The S&P 500 returned to its flat line by 11:00 ET and traded within six points of that level for the remainder of the session.
Five of ten sectors registered gains with energy (+1.4%) holding the lead throughout the day. The sector narrowed its January decline to 1.8% while crude oil fell 1.0% to $45.12/bbl. Crude traded higher intraday after OPEC secretary general said prices could reach $200/bbl if producers choose not to increase supply, but selling into the pit close pressured the energy component into negative territory.
Elsewhere among cyclical sectors, financials (+0.5%) and consumer discretionary (+0.6%) outperformed while technology (-0.4%) struggled throughout the day. Notably, the discretionary sector received support from homebuilders after D.R. Horton (DHI 24.38, +1.28) reported better than expected results. The stock surged 5.5% while the iShares Dow Jones US Home Construction ETF (ITB 25.34, +0.52) gained 2.1%.
It wasn't all sunshine for discretionary shares as Mattel (MAT 26.64, -1.40) lost 5.0% after issuing cautious guidance and announcing the resignation of its Chief Executive Officer.
Also of note, the technology sector spent the day behind other groups due to relative weakness among heavily-weighted components like Google (GOOGL 536.72, -5.23), Oracle (ORCL 43.90, -0.29), Intel (INTC 35.80, -0.64), and Microsoft (MSFT 47.01, -0.17).
Over on the countercyclical side, health care (+0.5%) ended in the green while consumer staples (unch), telecom services (-0.4%), and utilities (unch) lagged throughout the session.
Treasuries registered modest losses with the 10-yr yield climbing two basis points to 1.82%.
No Economic Data
Higher than prev day volume @ 796M vs 687.4M
Advancers outpaced Decliners(adv/dec): 2130M/952M
New highs outpaced low(high/low): 243/39
NASDAQ :
Higher than prev day volume @ 1708.1M vs 1635.6M
Advancers outpaced Decliners(adv/dec): 1794M/997M
New highs outpaced low(high/low): 92/64
Advancers outpaced Decliners by an average 2.01 to 1 on higher volumes than prev day (+181.1 +7.80%)
VOLATILITY S&P500 (VIX) :
15.52 -1.14(-6.84%)
Because of the incoming storm, a State of Emergency was already declared in Connecticut, New York, New Jersey, and Massachusetts, while the New York Stock Exchange announced plans to open and operate as usual on Tuesday. The NYSE operated as usual today, but that did not stop some participants from sitting the session out. Intraday volume was light, but a surge in late-afternoon activity brought the final tally (780 million) relatively close to the 50-day average (803 million).
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 Yanis Varoufakis, who is expected to be named finance minister, saying a euro exit is not in the plans and that talks of a ‘Grexit' should not be sensationalized.
Equity futures retreated at the Sunday open while the euro tested the 1.1100 level before bouncing into the 1.1250 area where it spent the bulk of the day. Similarly, equity futures erased the bulk of their losses ahead of the cash open.
The S&P 500 dipped below its 50-day moving average (2,047) in the early going, but the index found itself back above that level shortly thereafter. The S&P 500 returned to its flat line by 11:00 ET and traded within six points of that level for the remainder of the session.
Five of ten sectors registered gains with energy (+1.4%) holding the lead throughout the day. The sector narrowed its January decline to 1.8% while crude oil fell 1.0% to $45.12/bbl. Crude traded higher intraday after OPEC secretary general said prices could reach $200/bbl if producers choose not to increase supply, but selling into the pit close pressured the energy component into negative territory.
Elsewhere among cyclical sectors, financials (+0.5%) and consumer discretionary (+0.6%) outperformed while technology (-0.4%) struggled throughout the day. Notably, the discretionary sector received support from homebuilders after D.R. Horton (DHI 24.38, +1.28) reported better than expected results. The stock surged 5.5% while the iShares Dow Jones US Home Construction ETF (ITB 25.34, +0.52) gained 2.1%.
It wasn't all sunshine for discretionary shares as Mattel (MAT 26.64, -1.40) lost 5.0% after issuing cautious guidance and announcing the resignation of its Chief Executive Officer.
Also of note, the technology sector spent the day behind other groups due to relative weakness among heavily-weighted components like Google (GOOGL 536.72, -5.23), Oracle (ORCL 43.90, -0.29), Intel (INTC 35.80, -0.64), and Microsoft (MSFT 47.01, -0.17).
Over on the countercyclical side, health care (+0.5%) ended in the green while consumer staples (unch), telecom services (-0.4%), and utilities (unch) lagged throughout the session.
Treasuries registered modest losses with the 10-yr yield climbing two basis points to 1.82%.
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Economic Data
from Briefing.com
No Economic Data
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Technical Update
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Market Internal
NYSE :Higher than prev day volume @ 796M vs 687.4M
Advancers outpaced Decliners(adv/dec): 2130M/952M
New highs outpaced low(high/low): 243/39
NASDAQ :
Higher than prev day volume @ 1708.1M vs 1635.6M
Advancers outpaced Decliners(adv/dec): 1794M/997M
New highs outpaced low(high/low): 92/64
Advancers outpaced Decliners by an average 2.01 to 1 on higher volumes than prev day (+181.1 +7.80%)
VOLATILITY S&P500 (VIX) :
15.52 -1.14(-6.84%)
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Bonds, Currencies & Commodities
from Briefing.comBonds
Treasuries Reverse into the Red:- Treasuries booked small losses.
- The complex opened firm after the anti-austerity Syriza party won the Greek election, but slowly surrendered its gains over the course of the day.
- Up front, the 2Y ticked up +2bps to 52bps. This area remains in focus as it has acted as a pivot since June.
- In the belly, the 5Y added +2.6bps to 1.350%. Today's action caused the yield to climb for the fifth time in six days, and has the yield ~20bps off the January 16 low.
- The 10Y edged up +1.1bps to 1.828%. The benchmark yield withstood yet another test of support in the 1.800% area.
- Light selling at the long end caused the 30Y to add +0.4bps to 2.398%. The yield on the long bond narrowly avoided an all-time closing low.
- Little change along the yield curve saw the 2-10-yr spread hold near 131bps.
- Precious metals lost ground as gold fell -$12 to $1280 and silver lost -$0.37 to $17.93.
- Data: Durable orders (8:30), Case-Schiller 20-city Index (9), consumer confidence, and new home sales (10)
- Auction: Treasury's $26B 2Y note auction has been postponed until Wednesday due to inclement weather on the eastern seaboard.
Currencies
Dollar Drifts Little Changed :- The Dollar Index drifts little changed near 94.75.
- EURUSD is +75 pips @ 1.1275 as buyers emerge for the first time in three sessions. The single currency pressed to a fresh 11-year low below 1.1100 after the anti-austerity Syriza party took the Greek election and managed to form a coalition government. However, trade reversed course as the results were already priced in and Germany's Ifo business showed improvement versus the prior reading.
- GBPUSD is +110 pips @ 1.5100 as trade climbs off its worst levels since July 2013. The psychologically important 1.5000 area remains in focus as Britain's Preliminary GDP and BBA Mortgage Approvals are due out tomorrow.
- USDCHF is +200 pips @ .8990 as trade rallied to its best levels since the surprise Swiss National Bank announcement on January 15. The 200 dma (.9280) may provide some resistance.
- USDJPY is +70 pips @ 118.45 as trade remains trapped in the tight range that has been in place over the past week. The pair has seen little response to the latest Bank of Japan minutes, which showed policymakers are in no hurry to implement more easing.
- AUDUSD is +15 pips @ .7920 as some light buying develops for the first time in six days. Overnight weakness dropped the hard currency to its lowest levels in five years before reversing into positive territory. Australia's NAB Business Confidence will cross the wires tonight.
- USDCAD is +30 pips @ 1.2450 as action readies for its best close in six years. The 2008/2009 highs near 1.3000 are being watched closely.
Commodities
WTI Crude Oil Erases Gains, Ends With A Loss:- Mar WTI crude oil rose as high as $46.35/barrel, but lost all of those gains in the last two hours of trading and fell into negative territory
- Mar crude finished up the day $0.39 lower to $45.17/barrel
- Natural gas futures were in the red all day with the Mar contract closing $0.10 lower at $2.88/MMBtu
- Copper climbed higher all day and finished $0.04 higher at $2.54, easily off its $2.42/lb LoD
- Precious metals were weak today as well with Feb gold losing $13 to $1279.40/oz and Mar silver declining $0.32 at $17.98/oz
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Preview: Tuesday, 27 Jan 2015
Economic Data
| Date | ET | Release | For | Actual | Briefing.com Forecast | Briefing.com Consensus | Prior | Revised From |
|---|---|---|---|---|---|---|---|---|
| Jan 27 | 08:30 | Durable Orders | Dec | -3.2% | 0.5% | -2.1% | -0.9% | |
| Jan 27 | 08:30 | Durable Goods –ex transportation | Dec | 0.5% | 0.7% | -1.3% | -0.7% | |
| Jan 27 | 09:00 | Case-Shiller 20-city Index | Nov | 4.3% | 4.3% | 4.5% | ||
| Jan 27 | 10:00 | Consumer Confidence | Jan | 96.0 | 96.0 | 92.6 | ||
| Jan 27 | 10:00 | New Home Sales | Dec | 430K | 450K | 438K |
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