Morning Update: 10/23/2012


Slightly in the Plus Column

The stock market indices had a tremendous rally in the last hour that brought them back into the green, but the day started out quite negatively in down channels where they went all day, making new lows for the pullback on the NDX near 2672. The S&P 500 dropped all the way down to 1422, and in the last couple hours, bounced to resistance, backed off and formed a right handed extended V-pattern. When the last pullback held, they then took off and then accelerated. Short covering set in late in the session, with the NDX jumping from 2672 to 2698, and the S&P 500 from 1422 to 1434. They backed off just a tad into the close.

Net on the day, the Dow was up 2.38 at 13,345.89, 90 points off the low. The S&P 500 was up .62 at 1433.81, nearly 12 points off its low. The Nasdaq 100 up 16.24 at 2694.56, 23 points off its low.

Advance-declines were negative by only 75 issues on theNew York Stock Exchange, and about 13 issues on Nasdaq. Up/down volume had a slight plurality to the downside on New York, with total volume of 610 million shares. Nasdaq traded over 1.6 billion, and had a slight plurality to the upside.

Stepping back and reviewing the hourly chart patterns, the indices jumped early, backed off, made new highs early in the session, but then came down in a 3-wave decline from those highs and spiked down into the lows just after the lunch hour. They then snapped back in a big late rally, putting the indices back in the plus column, which was not a surprise since they were extremely oversold.

We’ll see what kind of follow-through we get tomorrow.




Tuesday, October 23

10:00 Richmond Fed Manufacturing Index – consensus 4, prior 4
11:00 Fed purchasing $7b-8b notes in 2.5 to 3-year range
11:30 US to sell 4-week bills
1:00 US selling $35b 2-yr notes
00:00 AUD Conference Board Leadin Index
08:30 GBP BBA Loans for Home Purchases
12:30 CAD Retail Sales
13:00 CAD Bank of Canada Rate Decision
14:00 EUR Eurozone Consumer Confidence

Harley-Davidson (HOG) EPS 58c
Regions Financial (RF) EPS 21c
DuPont (DD) EPS 47c
Coach (COH) EPS 76c
Xerox (XRX) EPS 25c
UPS (UPS) EPS $1.06
Whirlpool (WHR) EPS $1.60
Netflix (NFLX) EPS 5c
Altera (ALTR) EPS 46c
Juniper Networks (JNPR) EPS 17c
Norfolk Southern (NSC) EPS $1.23
Aflac (AFL) EPS $1.66
Broadcom (BRCM) EPS 77c
3M (MMM) EPS $1.65

There were no important economic statistics released on Monday. On Tuesday we will get the Richmond Fed mfg. index.



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