Morning Update: 7/6/2012

The stock market indices had a mixed session, and it was quite volatile despite the low volume today.

The day started out with a sharp dip to the downside which held, and then reversed sharply. The Nasdaq 100 really ran with Apple Inc. (AAPL) and Google Inc. (GOOG) leading the way. They then backed off midday and came on again in early afternoon to reach the session highs at 2660 NDX and 1374 S&P 500. Despite the new highs on the NDX, the S&P 500 was not able to get to 1375. They rolled over, and rolled over hard in the afternoon, and took back a big chunk of the gains, especially the NDX.

Net of the day, the Dow was down 47.15 at 12,896.67, about 65 points off its high, the S&P 500 was down 6.44 at 1367.58, only 6 points off its high, and the Nasdaq 100 up 1.63 at 2647.47, 13 points off the high.

Advance-declines were 17 to 13 negative on New York, and 13 to 11 negative on Nasdaq. Up/down volume was 2 1/2 to 1 negative on New York, with total volume of 676 million shares. Nasdaq traded 1.3 billion, and had dead even flat volume ratio

Stepping back and reviewing the hourly chart patterns, the indices were down early, snapped back sharply by midday, reached their session highs, but couldn’t get through the highs on the S&P 500 from Tuesday, even though the NDX did. They then rolled over and gave back a big chunk of the gains, which turned into losses for the S&P 500 and the Dow today.

It was a mixed picture. We’ll see how it goes tomorrow.

Friday, July 6

8:30 am: Nonfarm Payrolls, est. 90K, prior 69K
8:30 am: Private Payrolls, est. 97K, prior 82K
8:30 am: Manufacturing Payrolls, est. 5K, prior 12K
8:30 am: Unemployment Rate, est. 8.2%, prior 8.2%
8:30 am: Avg Weekly Hours, est: 34.4, prior 34.4
11:00 am: Fed to sell $7b-$8b notes in 1-year range
7:15 CHF Consumer Price Index
8:30 GBP Producer Price Index
10:00 EUR German Industrial Production
12:30 CAD Unemployment Rate

The ISM non mfg. number was 52.1, less than the expected 53.0. Initial claims were 374,000, less than the consensus 386,000. Oil inventories were down 4.3 million barrels. The ADP employment report was much better than expected, up 176,000. The expectation was for a rise of 95,000. On Friday we will get the non farm payroll.


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