Morning Update: 8/14/2012

The stock market indices started off on a mixed note, but they came way back from earlier losses.  The day started out with a little pop to the upside, and then an immediate sharp sell-off. The Nasdaq 100 went from 2727 to 2708, and the S&P 500 dropped from 1406 down to 13971/2. They then rallied back in a 5-wave advance over the next several hours to take the NDX 2708 to new highs for the day, reaching 2728 at the close. They backed off in the last hour, and came on again to close at that level, which was the high for the day on the NDX. However, despite the fact that the S&P 500 did break out over the minor resistance level, they did not get through overhead resistance, and, therefore, did not make new highs to confirm new highs on the NDX.

We’ll have to see if there is any follow-through tomorrow or not.

Net on the day, the Dow was down 38.52 at 13,169.43. The S&P 500 was down 2.38 at 1403.48. The Nasdaq 100 was up 5.72 at 2728.68.

Advance-declines were 3 to 2 negative on New York Stock Exchange, and 13 to 10 negative on Nasdaq. Up/down volume was 2 to 1 negative on New York, with total volume of a very light 474 million shares. Nasdaq traded over 1.3 billion, and had a 7 to 6 negative plurality.

Stepping back and reviewing the hourly chart patterns, even though they went up early, and sold off sharply, they came back with a roar today, closing right near the highs for the day on the NDX and slightly off the morning highs, but down on the session, on the S&P 500.


Tuesday, August 14

07:30 NFIB Small Business Optimism – consensus 92.0, prior 91.4
08:30 Producer Price Index MoM – consensus 0.2%, prior 0.1%
08:30 PPI Ex Food & Energy MoM – consensus 0.2%, prior 0.2%
08:30 Producer Price Index YoY – consensus 0.5%, prior 0.7%
08:30 PPI Ex Food & Energy YoY – consensus 2.3%, prior 2.6%
08:30 Advance Retail Sales – consensus 0.3%, prior -0.5%
08:30 Retail Sales Less Autos – consensus 0.3%, prior -0.4%
08:30 Retail Sales Ex Auto & Gas – consensus 0.5%, prior -0.2%
10:00 Business Inventories – consensus 0.2%, prior 0.3%
11:00 Fed buying $4.5b-5.5b in 8 to 10-year range
11:30 Treasury selling 4-week bills, $25b in 15-day cash management bills
CNY Actual FDI
01:30 AUD NAB Business Confidence
06:00 EUR German GDP
08:30 GBP CPI
08:30 GBP Retail Price Index
09:00 EUR Eurozone GDP
09:00 EUR Eurozone Industrial Production
09:00 EUR German ZEW Sentiment Survey

Dick’s Sporting Goods (DKS) EPS 64c
Home Depot (HD) EPS 97c
JDS Uniphase (JDSU) EPS 12c

There were no important economic releases on Monday. On Tuesday we wil get the PPI and retails sales.



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