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 Post subject: October 22nd Friday 2010 Emini TF ($TF_F) points +12.40
PostPosted: Sat Oct 23, 2010 12:14 pm 
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Special thanks to Bloomberg, CNNMoney and Yahoo! Finance for their market summaries. gm

Stocks End Day Mixed, Slightly Higher For Week
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By Julianne Pepitone, staff reporter
October 22, 2010: 4:21 PM ET

NEW YORK (CNNMoney.com) -- Stocks ended mixed Friday, but slightly higher for the week, as investors balanced strong U.S. corporate earnings against currency tensions at a summit of the world's major economies.

The Dow Jones industrial average (INDU) lost 14 points, or 0.1%, to end at 1,132.26. The S&P 500 (SPX) gained 3 points, or 0.2%, to settle at 1,183.08, and the Nasdaq (COMP) gained 20 points, or 0.8%, to end at 2,479.39.

Only 12 of the 30 blue-chip Dow index components ended higher Friday, while the tech-heavy Nasdaq got a moderate boost from strong earnings after Thursday's closing bell.

"Today's an especially slow day with a lack of economic data," said Stephen Carl, head equity trader at the Williams Capital Group. "The market is basically drifting ahead of more earnings and a lot of reports next week."

Over the week, the Dow and the S&P gained 0.6%, while the Nasdaq ticked up 0.4%.

Though domestic earnings generally have been strong this quarter, stocks were under some pressure Friday as investors remained concerned about issues abroad.

The two-day Group of 20 finance and central bank ministers meeting kicked off Friday in South Korea, with tensions about a so-called currency war brewing. U.S. officials have been pushing China to allow its currency, the yuan, to rise against the dollar and level the international export playing field.

In a letter to the G-20 ministers, Treasury Secretary Tim Geithner urged some developing countries to stop keeping their currencies artificially low, and to cap their surpluses or deficits to rebalance the world economy.

Stocks were coming off gains Thursday, as investors balanced strong earnings with heightened speculation that the Fed's next round of asset-buying won't be as dramatic as anticipated.

* What exactly is a currency war, anyway?

Companies: After Thursday's market close, Amazon (AMZN, Fortune 500) posted a 39% jump in sales and third-quarter earnings per share of 51 cents -- topping analyst expectations. The stock was up 2.7% in late trade Friday.

Also after the bell Thursday, Baidu (BIDU) -- China's leading search engine -- reported a profit that doubled in its most recent quarter on sales that soared 76% compared to last year. Shares jumped 6% Friday.

Shares of AIG (AIG, Fortune 500) rose 0.4% after reports said the company sold its Asian life insurance unit for $17.8 billion in a share offering Friday morning. AIG has said that it considers the sale of AIA -- one of its crown jewels -- to be a crucial component of its effort to repay the bailout it took from the U.S. government.

Honeywell (HON, Fortune 500) reported third-quarter sales rose to $8.4 billion, but earnings declined. Shares fell 1%.

Shares of Verizon (VZ, Fortune 500) fell 1.6% after the company reported third-quarter earnings per share of 31 cents, down from 41 cents per share a year earlier. The results included 25 cents per share in non-operational charges, much of which was related to pension settlements.

World markets: European stocks closed slightly lower. Britain's FTSE 100 and France's CAC 40 fell 0.3%, while the DAX in Germany lost 0.1%.

Asian markets ended the session mixed. The Shanghai Composite fell 0.3%, while the Hang Seng in Hong Kong fell 0.6%. Japan's Nikkei rose 0.5%.

Currencies and commodities: The dollar fell against the euro, the British pound and the Japanese yen.

Oil for December delivery gained $1.13 to settle at $81.69 a barrel.

Gold futures for December delivery fell 50 cents to settle at $1,325.10 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 2.56%.

Image

Yahoo! Finance

4:30 pm : Market participants had another fickle response to the latest round of earnings. That left the S&P 500 to trade listlessly in a narrow range near the neutral line. Despite that, the tech-rich Nasdaq staged a strong gain, as did small-cap and mid-cap stocks.

The S&P 500 spent several hours of this session confined to a three-point trading range just into positive territory, but managed to eke out a slight gain into the close. Though that only netted the stock market a 0.4% weekly gain, it was the third straight weekly advance and the seventh of the past eight weeks.

During the past two months the stock market has climbed close to 11%. Tech stocks had the most influence in that move, given that they represent the largest sector by market weight and that their 16% advance in that time was better than any other major sector.

Tech stocks traded with modest, but steady gains for most of this week's final session. They settled 0.6% higher with considerable help from semiconductor plays, which collectively climbed 2.0%.

Semiconductor stocks also supported the Nasdaq, as did Baidu.com (BIDU 107.28, +4.80) and Amazon.com (AMZN 169.13, +4.16), both of which hit record highs on the back of better-than-expected earnings.

Strength among small-cap stocks and mid-cap stocks helped the Russell 2000 and S&P 400 both book gains of 0.8%, which was better than that of the broader market. Clarient (CLRT 4.97, +1.23) led small-caps amid news it will be acquired by GE Healthcare for $5 per share. Compuware (CPWR 9.92, +1.10) led mid-caps after it posted an upside earnings surprise.

Among the more widely held names, American Express (AXP 39.03, -1.24), Honeywell (HON 47.26, +0.59), and Schlumberger (SLB 67.77, +3.46) also reported better-than-expected earnings. A positive response to SLB's report helped prop up the energy sector, which advanced 0.7%.

Defensive-oriented utilities and telecom lagged all session. They settled with losses of 0.6% and 0.3%, respectively. Exelon (EXC 42.00, -1.52) weighed heavily on electric utilities after it reported an earnings miss. Verizon (VZ 32.09, -0.43) failed to find support after it posted an upside earnings surprise.

The dollar managed to recover from a modest loss this morning, but did little thereafter. As such, it finished flat, though that may be due to the G-20 meeting, which could open up a discussion on trade policy and or currency manipulation.

This session's lackluster action kept a lot of traders on the sidelines. In turn, trading volume on the NYSE came in near 770 million shares, a one-month low.

Advancing Sectors: Energy (+0.7%), Tech (+0.6%), Consumer Discretionary (+0.5%), Consumer Staples (+0.3%), Financials (+0.1%), Health Care (+0.1%), Industrials (+0.1%)
Declining Sectors: Utilities (-0.6%), Materials (-0.6%), Telecom (-0.3%)DJ30 -14.01 NASDAQ +19.72 NQ100 +0.7% R2K +0.8% SP400 +0.8% SP500 +2.82 NASDAQ Adv/Vol/Dec 1660/1.66 bln/942 NYSE Adv/Vol/Dec 1758/772 mln/1172

3:30 pm : The CRB Commodity Index advanced 0.6% to book its ninth straight weekly gain, which came in at 0.4% this week.

Most of this session's move was due to a 1.4% climb in oil prices to $81.67 per barrel. That was still close to $2 shy of their weekly highs, though.

Natural gas prices extended their slide to new annual lows. Prices settled 1.1% lower at $3.33 per MMBtu.

Precious metals had an unexciting session that saw gold and silver settle fractionally lower at $1324.90 and $23.12 per ounce, respectively. DJ30 -28.39 NASDAQ +17.10 SP500 +1.29 NASDAQ Adv/Vol/Dec 1566/1.37 bln/1026 NYSE Adv/Vol/Dec 1662/570 mln/1260

3:00 pm : Though action has been listless and lackluster all session, stocks head into the final hour still sporting a weekly gain. While the S&P 500 is currently up just 0.4% this week, any gain will give the benchmark index its third straight weekly advance and its seventh in the past eight weeks. During those eight weeks the stock market has climbed 11%.

Tech stocks have been the biggest drivers of gains during the past eight weeks. In that time the sector has advanced 16.2%. Tech stocks are also this session's best performers; they currently sport a 0.5% gain. DJ30 -31.87 NASDAQ +16.17 SP500 +0.65 NASDAQ Adv/Vol/Dec 1537/1.24 bln/1034 NYSE Adv/Vol/Dec 1603/514 mln/1307

2:30 pm : The S&P 500 recently dipped into the red, but it was quick to recover. Overall moves remain modest in scope as the benchmark index has been confined to a three-point trading range for the past four hours.

The rather boring action comes as participants prepare for the weekend after digesting a barrage of earnings reports this week. Monday's batch is relatively modest in size, though. DJ30 -24.72 NASDAQ +18.05 SP500 +1.66 NASDAQ Adv/Vol/Dec 1516/1.15 bln/1024 NYSE Adv/Vol/Dec 1647/475 mln/1237

2:00 pm : The S&P 500 continues to hug the neutral line amid listless trade. Meanwhile, losses remain pronounced among materials stocks (-1.0%), utilities plays (-0.8%), and telecom stocks (-0.7%).

Despite such lackluster action, small-cap stocks and mid-cap stocks have actually had a relatively strong session in that the Russell 2000 is up 0.4% and the S&P 400 is up 0.6%. Clarient (CLRT 4.98, +1.24) is a primary leader among small-caps after it was announced that GE Healthcare will acquire the company for $5 per share. Meanwhile, Compuware (CPWR 9.80, +0.98) is a leader among mid-caps after it posted last evening an upside earnings surprise for its latest quarter. DJ30 -37.05 NASDAQ +12.94 SP500 -0.30 NASDAQ Adv/Vol/Dec 1442/1.07 bln/1096 NYSE Adv/Vol/Dec 1550/440 mln/1349

1:30 pm : Materials stocks have come under increased pressure, such that the sector is sitting at its session low with a 0.9% loss. Shares of Freeport-McMoRan (FCX 93.18, -3.25) have been the heaviest drag on the space. Their descent marks an extension of their downward drift off of the prior session's gap up that came in response to better-than-expected earnings for the latest quarter.

Meanwhile, global steel producer ArcelorMittal (MT 34.41, -0.31) is also under pressure. Its slide comes largely in response to a downgrade by analysts at HSBC. DJ30 -26.65 NASDAQ +15.69 SP500 +1.13 NASDAQ Adv/Vol/Dec 1475/1.00 bln/1038 NYSE Adv/Vol/Dec 1612/410 mln/1261

1:00 pm : Both the Dow and the S&P 500 have spent the session chopping along near the neutral line, but the Nasdaq has staged a strong gain.

Better-than-expected earnings from Baidu.com (BIDU 107.45, +4.97) and Amazon.com (AMZN 169.50, +4.53) have driven shares of the pair to record highs and helped the pair provide leadership to the Nasdaq. The tech-rich Composite has also been propped up by strength among semiconductor stocks, which have rallied to a 1.9% gain as the Philadelphia Semiconductor Index bounces off of its 200-day moving average.

The broader market has lacked direction for virtually all of the session. Many participants continue to take their cues from the dollar, which is up modestly at the moment. Though its strength this session has been limited, the dollar continues to drive broader trade. Participants will keep close tabs on the G-20 meeting for dialogue regarding calls for changes to trading policy and currency treatment.

Energy stocks had been strong performers in the early going, up more than 1%, collectively. That gain has been more than halved so that the sector is now up a rather tame 0.4%. Still, Schlumberger (SLB 67.17, +2.86) is at a five-month high following its own better-than-expected earnings report.

Though action in the broader market has been lackluster, defensive-oriented plays have been steady laggards throughout the session as disappointment over earnings from Exelon (EXC 41.97, -1.55) has left the utilities sector to a 0.8% loss. That said, telecom has fallen 0.7% even though Verizon (VZ 31.84, -0.68) posted an upside earnings surprise. DJ30 -25.59 NASDAQ +15.12 SP500 +1.02 NASDAQ Adv/Vol/Dec 1448/940 mln/1044 NYSE Adv/Vol/Dec 1579/380 mln/1279

12:30 pm : The broader market remains mired near the neutral line, but the Philadelphia Semiconductor Index has staged a strong bounce off of its 200-day moving average. The Semiconductor Index is up a sharp 1.8% as 29 of its 30 members push higher. Cirrus Logic (CRUS 13.22, -0.55) is the only component that remains in the red. Its slide comes as an extension of its prior session selloff, which was triggered by a disappointing earnings report. Shares of CRUS have stabilized at their 200-day moving average, which also marks a four-month low. DJ30 -15.22 NASDAQ +16.81 SP500 +1.98 NASDAQ Adv/Vol/Dec 1428/845 mln/1035 NYSE Adv/Vol/Dec 1603/345 mln/1238

12:00 pm : Despite its defensive-oriented nature, the utilities sector is underperforming the broader market by a wide margin. The sector's 1.0% loss is largely the result of disappointment over earnings from Exelon (EXC 42.17, -1.35). However, the electric utilities and generation outfit did lift the low end of its fiscal 2010 earnings outlook.

Telecom, also defensively oriented, makes up the next worst performing sector. Telecom stocks are collectively down 0.8% as participants dump shares of Dow component Verizon (VZ 31.77, -0.75), despite its upside earnings surprise. DJ30 -31.26 NASDAQ +11.02 SP500 +0.04 NASDAQ Adv/Vol/Dec 1301/765 mln/1126 NYSE Adv/Vol/Dec 1439/312 mln/1382

11:30 am : The Dow, currently underperforming its counterparts, has been dragged down by Verizon (VZ 31.94, -0.58) and American Express (AXP 39.61, -0.66), both of which posted better-than-expected earnings reports for the latest quarter. Their slide comes as participants take profits by selling news of the companies' upside surprises -- shares of AXP had climbed 3% in the four sessions leading up to its announcement while VZ had climbed a much more modest 0.3%, but had been holding steady near its multi-month high. DJ30 -16.66 NASDAQ +13.10 SP500 +1.28 NASDAQ Adv/Vol/Dec 1357/677 mln/1020 NYSE Adv/Vol/Dec 1536/276 mln/1275

11:00 am : Stocks continue to chop around without much direction. That has left the Dow and S&P 500 to remain near the neutral line.

However, the Nasdaq Composite has managed to muster a 0.5% gain. Most of that move is owed to big gains by Baidu.com (BIDU 107.97, +5.49) and renewed strength in Amazon.com (AMZN 168.36, +3.39). Both posted better-than-expected earnings for the latest quarter, but shares of AMZN actually ran into some selling initial pressure earlier this session. DJ30 -11.74 NASDAQ +11.82 SP500 +1.53 NASDAQ Adv/Vol/Dec 1412/573 mln/945 NYSE Adv/Vol/Dec 1640/232 mln/1138

10:30 am : Commodities are mixed this morning, while the dollar index has been chopping around right around the unchanged line.

December crude oil has been in positive territory all morning, but has been pulling back from session highs of $81.78, hit around 9:00am ET. Crude is currently at $81.19 per barrel, up 0.8%.

November natural gas lost steam and fell into the red earlier this morning and remains there in recent trade, now at $3.34 per MMBtu, down 0.8%.

Precious metals are mixed in current activity. December gold is slightly lower at $1323.00 per ounce, while December silver is just above the unchanged line at $23.16 per ounce.DJ30 -15.60 NASDAQ +7.92 SP500 +1.35 NASDAQ Adv/Vol/Dec 1371/448.6/902 NYSE Adv/Vol/Dec 1640/182.4/1085

10:00 am : The 50-day moving average of the S&P 500 has crossed above the benchmark average's 200-day moving average in an event termed a "golden cross," which is widely considered to be a bullish event, but that seems to have been overshadowed by an upturn in the dollar.

The dollar had spent most of the morning in the red with a modest loss against competing currencies, but it is now flat for the session. Though the inverse relationship between the stock market and the dollar has not been perfect in recent months, it has been a frequent underpinning of broader market action, given its role in the safety trade and in the repatriation of profits. DJ30 -24.90 NASDAQ +4.08 SP500 -0.52 NASDAQ Adv/Vol/Dec 1119/285 mln/1012 NYSE Adv/Vol/Dec 1328/121 mln/1285

09:45 am : Despite a solid bid during premarket trade, the broader equity market has struggled to attract steady support in the first few minutes of the session.

While the rest of the market is a bit mixed, energy stocks have sprinted out to an enviable gain. The sector was up more than 1%, but it has since eased back to trade with a 0.8% gain. Its strength stems largely from a run up in shares of oil and gas equipment plays like Schlumberger (SLB 67.54, +3.23), which reported better-than-expected earnings this morning. The stock is now at its best level in about six months.

Higher oil prices have also helped the energy sector. Specifically, crude oil contracts currently price the energy component at $81.50 per barrel, up 1.1%. Oil prices are still close to a couple of bucks shy of their weekly highs, though. DJ30 -3.71 NASDAQ +8.69 SP500 +3.07 NASDAQ Adv/Vol/Dec 1384/185 mln/681 NYSE Adv/Vol/Dec 1709/86 mln/839

09:15 am : S&P futures vs fair value: +3.90. Nasdaq futures vs fair value: +1.80. Buying has picked up a bit ahead of the opening bell, sucht that a strong start to the final session of the week now looks to be in order. The early bid would be supportive of another weekly gain, which currently stands at about 0.3%. Any advance would make for the stock market's third straight weekly gain and its seventh in eight weeks. That streak of gains has lifted the stock market's 50-day moving average so that it has come to an intersection with its 200-day moving average. A dwindling dollar has underpinned most of the stock market's gains in the past couple of months -- during the course of the past eight weeks the dollar has dropped almost 7% against a basket of competing currencies. Its weakness this morning is more modest as the G-20 meeting gets underway and speculation rises regarding the discourse of currency manipulation and protectionism. Of course earnings season is now in full swing. Bellwethers and stalwarts continue to post strong bottom line results, but revenue strength has not been as consistent. That continues to concern some, given the implications it carries for the ability to attract demand amid ongoing macro headwinds.

09:00 am : S&P futures vs fair value: +3.00. Nasdaq futures vs fair value: +2.50. Stock futures continue to sport a modest lead over fair value, but commodities are mixed this morning. Still, the CRB Commodity Index is up a healthy 0.5%. Most of the move is owed to a 1.1% gain in oil prices, which were last quoted at $81.50 per barrel in early pit trade. Natural gas prices are down 0.4% to $3.36 per MMBtu. Silver prices are flat at $23.14 per ounce. Gold is also unchanged, last quoted at $1324 per ounce.

08:30 am : S&P futures vs fair value: +1.90. Nasdaq futures vs fair value: +0.50. Futures for the S&P 500 continue to trade with a modest lead over fair value. Overseas action hasn't been very exciting. Germany's DAX is flat as its advancing issues and declining issues trade in perfect balance. Volkswagen is atop the list of leaders while Commerzbank is among the weaker issues. France's CAC has worked its way up to a 0.1% gain. The move has been led by BNP Paribas, but Axa (AXA) has been a drag. Declining issues continue to outnumber advancers in the FTSE, but the British Index has managed to winnow losses so that it is now down just 0.2%. BP Plc (BP), Anglo American, and Barclays (BCS) have hampered action, but BG Group, Royal Dutch Shell (RDS.A), and Lloyds Group (LYG) have provided support.

In Asia, Japan's Nikkei concluded the week with a 0.5% gain as advancers outnumbered declining issues by 3-to-1. Fanuc Ltd., Canon (CAJ), and Fast Retailing were leaders in the move. Still, their strength was not enough to take the Nikkei into the green for the week. Instead, it incurred a 0.8 weekly loss. Mainland China's Shanghai Composite finished with a 0.3% loss as Sany Heavy Industry Co and SAIC Motor gained, but heavyweights PetroChina (PTR), China Life Insurance, and Bank of China lagged. The Shanghai Composite netted a fractional gain for the week. Hong Kong's Hang Seng shed 0.6% as China Construction Bank, China Life Insurance, Bank fo China, and China Mobile offset strength in Hutchison Whampoa and HSBC (HBC). The slide by the Hang Seng on Friday left it to finish with a 1.0% weekly loss.

08:00 am : S&P futures vs fair value: +2.20. Nasdaq futures vs fair value: +0.50. Futures for the S&P 500 are up a bit with help from a dip by the dollar, which currently trails competing currencies by a relatively modest margin -- look for further movements and gyrations with the latest G-20 meeting underway. Should the generally positive tone to premarket trade hold, the stock market's 50-day moving average will likely cross above its 200-day moving average. Strong earnings remain supportive of a positive bias. In the latest round of reports, Amazon.com (AMZN), Baidu.com (BIDU), American Express (AXP), Schlumberger (SLB), and Verizon (VZ) all posted better-than-expected bottom line results. There are now items on the economic calendar today.

06:35 am : S&P futures vs fair value: -2.40. Nasdaq futures vs fair value: -7.80.

06:35 am : Nikkei...9426.71...+50.20...+0.50%. Hang Seng...23517.54...-131.90...-0.60%.

06:35 am : FTSE...5731.07...-26.80...-0.50%. DAX...6602.71...-8.20...-0.10%.

Special thanks to Bloomberg, CNNMoney and Yahoo! Finance for their market summaries. gm

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Only Trading (no indicators)
Image@ http://twitter.com/wrbtrader and http://stocktwits.com/wrbtrader

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