Morning Update: 10/18/2012

Mixed Day With Positive Technicals

The stock market indices had a mixed close, but a volatile session. The Nasdaq 100 moved down fairly sharply at the opening, while the S&P 500 actually firmed up. They then both turned around and ran sharply to reach the session highs on the NDX early in the morning, and then pulled back. Falling wedges have appeared for both of them to try another high. They did, and the S&P 500 broke out to new highs at 1452, but the NDX couldn’t confirm. They both rolled over hard early afternoon. When secondary support held, they rallied back sharply only to fall back again in the last 20-30 minutes.

Net on the day, the Dow was up 5.07 at 13,556.85, 5 points off the high and 90 points off the low. The S&P 500 was up 5.99 at 1460.91, slightly off the high and 7 points off the low. The Nasdaq 100 was down 2.76 to at 2775.62, 9 points off the high and 15 points off the low.

Advance-declines were 20 1/2 to 9 positive onNew York Stock Exchange, and almost 3 to 2 positive on Nasdaq. Up/down volume was nearly 3 to 1 positive on New York, with total volume of 670 million shares. Nasdaq traded nearly 1.7 billion, and had flat volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices were down early, came back sharply, pulled back to retest and rallied to the session highs just before the lunch hour. They rolled over in the afternoon, snapped back sharply, only to pull back again into the close, and closed positive on the Dow and S&P 500, but negative on the Nasdaq 100.

It was a mixed day with positive technicals.

 

Institutional

 

Leaders

Thursday, October 18

Economics
08:30 Initial Jobless Claims – consensus 365K, prior 339K
08:30 Continuing Claims – consensus 3275K, prior 3273K
10:00 Philly Fed – consensus 0.0, prior -1.9%
10:00 Leading Indicators – consensus 0.2%, prior -0.1%
11:00 Fed to buy $1.75b-$2.25b notes in 25 to 30-year range
1:00 US selling $7b in 30-year TIPS (reopening)
01:30 CNY China Property Prices
02:00 CNY Industrial Production
02:00 CNY Real GDP
02:00 CNY Retail Sales
08:30 GBP Retail Sales
12:30 CAD Wholesales Sales
9:30 Spain to sell 3, 4, 10-year bonds
10:30 UK to sell 7-year bonds

Earnings
Before:
BB&T (BBT) EPS 72c
Keycorp (KEY) EPS 21c
Traveler’s Insurance (TRV) EPS $1.51
Cypress Semiconductor (CY) EPS 20c
Southwest Airline (LOVE) EPS 13c
Fifth Third Bancorp (FITB) EPS 39c
Phillip Morris (PM) EPS $1.39
Morgan Stanley (MS) EPS 25c
Verizon (VZ) EPS 65c
Union Pacific (UNP) EPS $2.17
After
Chipotle (CMG) EPS $2.29
Capital One Financial (COF) EPS $1.75
Riverbed (RVBD) EPS 25c
Microsoft (MSFT) EPS 59c
Google (GOOG) EPS $10.54
Sandisk (SNDK) EPS 33c
Etrade (ETFC) EPS 8c
Advanced Micro Devices (AMD) EPS -17c
Blackstone (BX) EPS 41c

Oil inventories rose 2.9 million barrels, more than last week’s 1.7 million. Housing starts were 872,000, better than the expected 765,000. On Thursday we will get initial jobless claims and the Philadelphia Fed mfg. survey

 

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