QQQ Morning Update

Plunged on record low homes sales

2012-01-27T05:42:00.004-05:00

Stocks ended in the red as investors digested a mixed batch of earnings results, economic data and remained cautious amid ongoing debt talks in Greece. Ahead of the home-sales report, investors greeted a round of better-than-expected earnings from companies including Caterpillar and report on jobless claims. Initial jobless claims rose to 377,000, while economists had anticipated 375,000 claims. New homes sales fell 2.2% in December. For all of 2011, sales of new homes fell 6.2% to 302,000 - the worst on record. Also, AT&T fell 2.5% after the co. reported a $6.7 billion quarterly loss related to its failed merger with T-Mobile USA. Tech stocks sunk deeper in the red, with SanDisk leading losses despite a strong run-up from Netflix. Netflix extended gain and jumped more than 20% after upbeat fourth-quarter projections and upgrade at Citigroup. Implied volatility inched higher in moderate trading volumes.

Erased early losses after the Fed’s report

2012-01-26T06:47:00.001-05:00

Stocks erased early losses and ended higher after the Federal Reserve said it plans to keep interest rates near historic lows through late 2014. The Fed also said it expects the unemployment rate to fall to 8.2% -8.5%, and the economy to grow 2.2%- 2.7% in 2012, slightly slower than it had previously thought. Also, pending home sales dropped by 3.5% in December, after rising 7.3% in the prior month. Apple led tech gains, rising 6.2% to close at new all-time high after brilliant earnings report. Advanced Micro Devices gained 3.1% despite weaker-than-expected revenue and a sales outlook. The sector was taking hits from a rash of financial reports from Corning, Motorola Solutions and weak Nvidia sales forecast. In the evening trade Netflix surged 14% following solid quarterly results, while SanDisk lost 8.4% following a soft outlook. Implied volatility inched lower in massive trading.

Closed in the red on worries about Greece and global growth

2012-01-25T06:20:00.003-05:00

Stocks ended mostly in the red as investors were anxious about progress on Greek debt talks and waded through another batch of corpora results. Also, the IMF lowered its outlook for the world economy’s growth from 4% to 3.3%, and warned that the global financial system faces growing risks from the debt crisis in Europe. Tech stocks got a lift after Texas Instruments signaled a coming rebound, and on gains from EMC and Western Digital, which both jumped on strong results. In the vening trade Apple rose 7.8% in heavy volume, after the co.’s first-quarter earnings more than doubled and second-quarter forecast came in ahead of current projections. Yahoo fell 0.6% after the firm reported earnings in line and weaker than expected revenue. Also, AMD lost 2.9% as the chip maker’s quarterly revenue fell shy of expectations. The Fed will release forward-looking forecasts for the federal funds rate for the first time ever today. Implied volatility inched higher on moderate trading volumes.

Closed flat in choppy session

2012-01-24T05:33:00.001-05:00

Stocks closed flat in volatile trading, as investors grew jittery amid uncertainty surrounding Greek debt talks. The tech sector slipped into the red, despite gains in Apple and Hewlett-Packard. RIM shed 8.5% after the firm said on Sunday that CEOs Mike Lazaridis and Jim Balsillie were stepping down. In the evening trade Texas Instruments rose 2.6% after the chip maker posted mixed quarterly results and said it’s closing two factories to cut costs and sounded a brighter note about the industry’s prospects. The Federal Reserve starts a two-day meeting on Tuesday, and for the first time ever, the central bank will release forward-looking forecasts for the federal funds rate. The government also releases its first estimate of fourth-quarter economic growth on Friday. Implied volatility inched higher on moderate trading volumes.

Upside seen limited

2012-01-22T13:48:00.002-05:00

Investors foresee a choppy week ahead, as earnings kick into high gear and Europe's debt crisis heats up. Earnings for S&P 500 companies are expected to have climbed just 5% in the Q4. While expectations are low, earnings haven't been as soft as we had feared. In the face of severe economic problems in Europe, large U.S. companies continue to do pretty good. The Fed holds its policy meeting this week, with a statement due out Wednesday afternoon. The Fed will also release its estimate for economic growth, unemployment and inflation.

Boosted on banks and economic data

2012-01-20T06:17:00.002-05:00

Stocks advanced for a third straight session, rising to fresh six-month highs, following solid gains in financials with stronger than expected quarterly results from Bank of America and Morgan Stanley. Also, weekly unemployment claims fell to 352,000, down sharply from 402,000 claims in the previous week, and consumer prices were flat last month. Housing starts fell 4.1% in December to a seasonally adjusted 657,000 annualized units. Tech stocks closed in the green following strong earnings from eBay and F5 Networks. In the evening trade Google stumbled 9% as its quarterly growth coming in lower than expected, while Microsoft, IBM and Intel each moved higher following upbeat financial updates. Implied volatility inched lower on massive trading volumes.

Extended gains

2012-01-19T03:35:00.003-05:00

Stocks advanced to six-month highs as investors welcomed the International Monetary Fund plan to boost its bailout fund to contain Europe’s debt crisis. The IMF said it is looking to raise up to $500 billion in additional lending resources to reach the target of $1 trillion in potential global financing needs in the coming years. Also, Goldman Sachs reported fourth-quarter earnings that beat forecasts, and spiked almost 7%. Producer prices fell 0.1% in December, while economists expected a rise of 0.1% during the month. Tech stocks rose following gains from semis and Yahoo, which gained 3.2% on news that co-founder Jerry Yang resigned from the Internet company’s board of directors. Among other tech stocks, Apple continued to climb, rising 1.0% ahead of an event scheduled for Thursday morning in New York that is expected to focus on the publishing or educational markets. On the downside, Research In Motion lost 1.1% after Samsung Electronics denied a report that it was considering making a bid for the co. In the evening trade EBay was up 2.2% after strong earnings. Implied volatility inched lower on huge trading volumes.

Closed higher on strong global economic data

2012-01-18T05:40:00.002-05:00

Stocks closed higher, as investors welcomed several signs of improving global economic growth. China's economy grew at an annual rate of 8.9% in the fourth quarter of 2011, better than many analysts expected. Also, German sentiment index topped expectations, and New York regional manufacturing growth, which was largely due to new orders and employment. Financials weighed on the overall market after Citigroup missed earnings and lost more than 8%. Tech stocks rallied, as Apple gained 1.2% and closed at a record high, while Research In Motion gained 8% on a report that it’s considering a sale to Samsung. Also Applied Materials jumped after an upgrade based on a upbeat view of the company’s 2012 prospects. Intel edged down 0.4% after J.P. Morgan downgraded the co. to neutral from overweight, arguing that margins are peaking. In the evening trade Yahoo gained more than 3% after the co. said its co-founder Jerry Yang is leaving. Implied volatility inched higher on massive trading volumes.

Eyes on Europe and earnings

2012-01-17T05:23:00.000-05:00

Stocks fell, denting weekly gains, after J.P. Morgan Chase & Co. reported a profit drop and as investors fretted a possible Greek default and coming downgrades of euro-area nations. The tech sector slipped into the red, as Apple dipped on reports that it has stopped selling the iPhone 4S in Beijing temporarily as the company was met with unruly customers. Meanwhile, European stocks closed slightly higher Monday, shrugging off Standard & Poor’s downgrade of nine eurozone governments. This week investers will focus on news from Europe and earnings. Implied volatility inched higher on moderate volumes.

Managed to close higher

2012-01-13T04:38:00.001-05:00

Stocks closed slightly higher as the European Central Bank held rates steady at 1%. Stocks had been lower after U.S. December retail sales rose 0.1% instead of 0.4% expected. Also, weekly initial unemployment claims totaled 399,000, which was worse than 375,000 expected. Techn stocks were mostly higher, as EMC rose 1.8% after J.P. Morgan upgraded the stock citing the company’s momentum in the data storage market. IBM was one of the top decliners on the Dow Jones Industrial Average sinking 1% to the close. Implied volatility inched lower on modest volumes.

Erased early losses

2012-01-12T03:56:00.001-05:00

Stocks recovered from earlier losses to end little changed as concerns about Europe's weak economy and debt crisis weighed on the market. German economy contracted 0.25% in the last three months of the year. On the upside, the Federal Reserve said economic conditions across its 12 districts continued to expand moderately from November to December, and retailers reported strong holiday sales in December, but the residential real estate market was down in all districts. Tech stocks edged higher, but Microsoft slipped after warning that personal computer shipments may be weaker than expected. Hewlett-Packard and Dell were in the red. Chevron fell in the evening trade after the co. warned of fourth-quarter earnings to come in “significantly below” its third-quarter results. Implied volatility inched higher on the light trading volumes.

Advanced on weak dollar and comments about Europe

2012-01-11T04:39:00.003-05:00

Stocks advanced, on the back of gains in global markets and weak dollar, as investors found comfort in Fitch Rating’s comments about Europe being on the right path toward solving its debt problems and a decent start to quarterly corporate results. The gains were led by bank stocks. Also, the Census Bureau reported that wholesale inventories rose 0.1% in November, lower than 0.6% increase expected . Tech stocks were broadly higher, but Netflix slumped 2.4% after Bank of America cut its rating. In other evening action, Eastman Kodak picked up 3.3%, after the company said it’s suing Apple and HTC for infringement of certain patents related to digital imaging technology. Implied volatility inched lower on moderate trading volumes.

Edged higher on profit hopes

2012-01-10T04:35:00.004-05:00

Stocks closed higher in moderate trading as investors continued to keep a close eye on events in Europe and geared up for the start of fourth-quarter corporate earnings announcements. Angela Merkel and Nicolas Sarkozy said that progress has been made on a proposed intergovernmental pact to increase fiscal discipline across the eurozone, which could be signed ahead of the Jan. 30 EU summit and go into effect as early as March. Meanwhile, yields on 10-year Italian bonds reached 7.16%, after the government announced plans to sell €8.5 worth of 12-month bills Thursday. Tech stocks also edged up boosted by gains in semiconductors and networking stocks which got a lift from a Deutsche Bank upgrade and upbeat reviews from Stifel Nicolaus. Also Netflix jumped 13.8% after hedge fund manager Whitney Tilson told CNBC that he considers the digital media company a potential buyout target. Google was off 4.2% after Stifel Nicolaus trimmed revenue and earnings estimates for the co. citing “weakness in end demand from key European territories may depress overall growth rates.” After the close Alcoa said its disappointing fourth-quarter results reflected weak demand, especially in Europe, but forecasted a 7% increase in global aluminum demand and a global deficit in primary aluminum supply in 2012. Implied volatility inched higher in light trading.

Earnings and Europe in focus

2012-01-08T22:48:00.003-05:00

The tone has been cautious and trading volumes have been low. Many investors have taken to the sidelines rather than commit to stocks. However, the Nasdaq gained 2.7% last week. The market will probably bounce around next week as the market remains torn between rising hopes for the U.S. economy and debt problems in Europe. U.S. companies begin to release Q4 reports and discuss the outlook for 2012. Overall, earnings for the S&P 500 companies are expected to be up 7.5% . Alcoa will report results Monday. In Las Vegas, the Consumer Electronics Show will bring together top high-tech executives. The main attraction on the economic calendar is Thursday's report on December retail sales.

Inching higher

2012-01-06T02:38:00.002-05:00

Stocks erased early losses to close mixed as investors weighed fears about Europe's debt crisis against upbeat reports on the U.S. economy. Investors welcomed a better-than-expected U.S. economic reports but disappointed by Italian and Spanish bond yields. The underlying tone of trading remained cautious. The market needs more catalysts to move higher. In the same time, Taiwan handset maker HTC Corp. said Friday its Q4 profit fell 26% as a result of intensifying competition and a slowing global economy.

Holding gains in quiet trading

2012-01-05T04:23:00.002-05:00

Stocks erased earlier losses to close mixed amid renewed concerns about the debt crisis in Europe. The market was supported by strong sales gains by the main U.S. automakers and a rise in November factory orders. Seagate Technology climbed by more than 7% after hours. The company said it expects to report a much higher revenue. Goldman Sachs has warned that Amazon could miss its Q4 projections because of a deterioration in the growth of online shopping. European markets show weakness.

Jumped on strong data

2012-01-04T03:12:00.002-05:00

Stocks rallied, , as investors welcomed upbeat reports on economic activity around the world. On Tuesday, a report showed U.S. manufacturing activity grew at a faster rate in December. But traders say the market is vulnerable to concerns about the debt crisis in Europe, which has been the main driver of stock prices for several months. Oil prices surged more than 4%. Cisco inched lower in after hours trading, down 0.2% after a 3.4% rise in the regular session. J.P. Morgan analyst Ron Hall raised his rating on the networking-equipment company to overweight from neutral. Bullish sentiment prevails.

Looking for direction

2012-01-03T00:51:00.003-05:00

The Q1 2012 is going to be a roller coaster ride, with Europe front and center. Europe is widely expected to have slipped into a mild recession during Q1 and this could lead to more downgrades of national credit ratings. In the US, investors have been encouraged by strong readings on consumer confidence, modest gains in payrolls and glimmers of a turnaround in the housing market. At the same time, corporate profits are expected to continue rising and the Fed will probably keep interest rates low well into 2012. Volatility is likely to remain elevated in Q1 given the uncertainties surrounding the global economy. Despite the expected turmoil in H1 2012, many analysts expect stocks to post full-year gains between 6% and 10% as the global economy stabilizes.

Posted gains after positive economic data

2011-12-30T03:47:00.001-05:00

Stocks rose in a thinly-traded session as investors focused on signs of strength in the economy. Jobless claims rose 15,000 to 381,000 in the latest week, while analysts had expected 368,000 claims. But the figure remained below 400,000, giving investors hope that the labor market will strengthen in 2012. Pending home sales rose 4% to a seasonally adjusted annual rate of 4.42 million in November, economist had expected the a 0.6% increase. Technology stocks held on to modest gains, even as Amazon lost a penny after analysts at Goldman Sachs suggested that the online retailer's sales growth for the holiday period may fall short of expectations. Yahoo gained 2.2% after reports that China's Alibaba Group has hired a lobbying firm to prepare a bid for Yahoo. Implied volatility inched lower in the lightest trading.

Closed in the red on concers over Italy's bond auction

2011-12-29T05:27:00.001-05:00

Stocks gave up more than 1%, as investors continued to fret over how Europe could solve its debt troubles in 2012. Concerns about Italy’s next auction of government debt also weighed on the market. Among the laggards, Morgan Stanley dropped 2.6% after the co. had alerted the NY Department of Labor that 580 of its 1,600 layoffs would impact the New York City area. Tech stocks also slipped, led by slumping Cisco Systems and Netflix. Cisco fell 2.3%, while Netflix sank 2% after following the report that Netflix’s customer satisfaction score fell as a result of the company’s “well publicized blunders.” Morgan Stanley pared losses slightly rising 0.3% in after-hours activity on moderate volume. Implied volatility inched higher on modest trading volumes.

Closed mixed

2011-12-28T04:33:00.001-05:00

Stocks closed mixed with the Dow industrials finishing slightly lower, but the S&P 500 and Nasdaq closed modestly higher supported by a jump in consumer confidence. Tech stocks closed mostly lower, with Computer Sciences among the bigger decliners after the co. warned it may write down $1.5 billion due to its failure to secure a contract with the U.K.’s National Health Service. Rambus fell 3.7% after rallying more than 12% on Friday in the wake of an announcement that it had reached a patent-licensing agreement with Broadcom. On the upside, Salesforce.com climbed 2.3% after JMP released an upbeat analyst note on the software-maker’s prospects. In the evening trade Cavium fell 6% after the co. issued weaker-than-expected earnings guidance. Implied volatility inched higher on the lightest trading volumes.

Quiet week ahead

2011-12-27T05:37:00.002-05:00

Stocks rallied to their third weekly gain in four after Congress approved a tax-cut extension and orders for durable goods in November climbed the most in four months and new-home sales for November rose 1.6% to a seven-month high. Tech stocks ended the week on an upbeat note with Rambus gaining more than 12% after it reached a patent agreement with Broadcom. Also, AT&T rose 0.71% won regulatory approval to buy wireless spectrum from Qualcomm. The week ahead is expected to be quiet as many market players taking time off for the holidays. The market will try to extend “the Santa Claus rally”, none of the 500 companies on the S&P 500 was expected to report earnings. But the market remains vulnerable to another sell-off if the debt crisis in Europe takes a turn for the worse. Implied volatility inched lower on very light trading volumes.
NEAREST RESISTANCE LEVELS: 57.8, 58.3, 59.0
NEAREST SUPPORT LEVELS: 54.0, 53.0, 50.0

Surged on strong jobless data

2011-12-23T04:21:00.004-05:00

Stocks climbed, after weekly jobless claims fell to a multi-year low of 364,000 (the lowest level since April 2008) and consumer sentiment rose to 69.9 from 64.1 in December. Tech stocks rallied on gains from Akamai and Micron. Akami surged almost 19% on announce the it would acquire Cotendo, a developer of applications for delivering content over the Web and mobile devices, for $268 million. Micron Technology rose 15.7%, after the co. said that there are signs that demand in the PC market should improve early next year. Netflix addded 4% after Citigroup left its neutral rating, but trimmed his price target to $80 a share from $94, saying the company is still a “wait and see story” in the wake of its scrapped plans to spin off its DVD-rental business as a separate company. In the evening trade Rambus jumped 8% after the co signed a patent licensing deal with Broadcom. Implied volatility inched lower on modest trading volumes.

Managed to post gains

2011-12-22T06:38:00.000-05:00

Stocks ended the day barely in positive territory, after falling on fears over the health of European banks and worse-than-expected readings on the housing market. Late in the session, the Justice Department announced a $335 million settlement with Bank of America over alleged discriminatory lending practices by its Countrywide Financial unit. Also, Yahoo’s 5.8% surge supported the broader market after the media report that Yahoo was discussing a plan to cut its stake in Alibaba Group to about 15% from 40% as part of a tax-free transaction valued at between $17 billion and $18 billion. Tech sector trimmed some of the day’s losses, but closed lower after most software stocks dropped dramatically following Oracle’s surprisingly weak quarterly earnings. After the close of European markets, Standard & Poors’ lowered its rating on Hungary to BB+/B and put it on a negative outlook. In the evening trade Micron was 1.6% off as the co.’s per-share loss was wider than anticipated. Implied volatility inched lower on modest trading volumes.

Boosted on strong housing data

2011-12-21T05:32:00.002-05:00

Stocks surged, as sentiment about the global economy got a boost from a jump in the nation’s housing starts, improving German business data and a better Spanish bond auction. The number of new homes rose to an annual rate of 685,000 in November, with requests for building permits rising 1.8% to 681,000 compared to last year, while analysts expected housing starts to hit 627,000, and building permits to come in at 633,000 for November. Tech stocks also put in a strong performance ahead of quarterly results from Oracle and in the wake of AT&T saying it would drop its $39 billion bid to acquire T-Moble USA. However, Oracle fell more than 8% in after-hours trading as the co.’s results fell short of analysts’ estimates for a profit of $0.57 on $9.23 billion in revenue. Implied volatility inched lower on modest trading volumes.

Extended losses on concers over Europe

2011-12-20T05:25:00.002-05:00

Stocks extended losses on the latest concerns about euro and statements by European Union finance ministers. Tech stocks started the week with losses, with Apple managing to eke out gains. Apple rose 0.31% after the media report that in recent weeks Apple executives have met with officials at several large media companies about bringing content to a future Apple television that would use wireless streaming technology for programming. Xilinx shed 1.92% after the co. lowered its current-quarter sales forecast. Oracle slid 2.04% in advance of the co.’s quarterly results, due after the close of trading on Tuesday. AT&T pulled back in the evening session after the company said it will drop its bid to purchase T-Mobile USA, and Red Hat Inc. reported a jump in quarterly earnings and sales, but the business-software maker’s shares were hit during the evening-trading session. In the evening trade AT&T was down 0.7% as the co.’s ending its bid to acquire T-Mobile USA after the deal was opposed by federal regulators. Red Hat reported slightly higher than expected earnings but tumbled 10%. Implied volatility inched lower on very light trading volumes.

Volatile week ahead

2011-12-19T04:51:00.001-05:00

Stocks slid to weekly losses after a rating agency warning on Europe shred investor’s optimism after a confidence vote in Italy. Fitch Ratings affirmed France’s top Triple-A credit rating, but warned of a potential downgrade for six other euro-using nations, placing Belgium, Spain, Slovenia, Italy, Ireland and Cyprus under review, calling a broad solution to Europe’s debt crisis “technically and politically beyond reach.” Also, U.S. consumer prices held flat in November as gas costs fell, while core prices climbed 0.2%. Tech stocks closed with broad gains, but declines of Zynga Inc. and Research In Motion commanded investors’ attention through the day. Zynga lost 5%, closing below the stock’s IPO price of $10 a share. RIM fell more than 11% in the wake of the company’s disappointing earnings results and forecast. We expect the volatile week ahead, as investors remain worried about the debt crisis in Europe. Also, low trading volumes ahead of the holidays tends to exaggerate swings in the market. Implied volatility inched lower on massive trading volumes.

Failed to hold gains

2011-12-16T05:34:00.001-05:00

Stocks gained after stronger U.S. economic data, snapping a three-day losing streak, but finished off session highs after another warning about Europe’s sovereign-debt crisis. Initial jobless claims filed in the U.S. last week were the lowest since May 2008. Also, a gauge of mid-Atlantic manufacturing activity jumped for December versus the prior month. But gains faded away after IMF chief Christine Lagarde called the global economic outlook “quite gloomy” and urged international help in resolving Europe’s sovereign-debt crisis. Tech stocks closed mixed after set of corporate news. Lam Research gave up more than 8%, while Novellus rallied more than 16%, on report that Lam to acquire Novellus for $3.3 billion. Amazon gained 1.05% after the co. said it has sold more than 1 million of its Kindle e-book readers and tablets in each of the last three weeks. In the evening trade Research In Motion tumbled 7.1% after a weak quarterly forecast, while Adobe Systems advanced 4.3% following better-than-expected financial results. Implied volatility inched lower on moderate trading volumes.

Slid again on fears over Europe and strong dollar

2011-12-15T05:21:00.003-05:00

Stocks closed lower for a third straight day as investors worried about the toll of Europe’s debt struggles on the global economy and unloaded gold and the euro. Italy’s borrowing costs rose to a euro-era record at a bond auction, and the euro broke 11-month lows against the dollar. The tech sector sank into the red with Groupon sliding 3.3% an nearly a dozen brokers started coverage of the stock with mostly neutral views. Meanwhile, Gartner Inc reported that semiconductor capital equipment spending is expected to total $15.7 billion in 2012, down 19.5% from the projected total of $64.2 billion in 2011and said the slowdown is expected to last through the second quarter of 2012. On the upside, Broadcom gained 0.9%, after the co. said it expects to post revenue at the high end of its guidance. After the close Novellus Systems rallied as the co. agreed to a buyout. Implied volatility inched higher on huge trading volumes.
NEAREST RESISTANCE LEVELS: 57.8, 58.3, 59.0
NEAREST SUPPORT LEVELS: 53.0, 50.0

Extended losses after the Fed’s report

2011-12-14T03:03:00.000-05:00

Stocks tumbled for a second session after the Federal Reserve left rates unchanged and declined to signal another round of quantitative easing. A report that German Chancellor Angela Merkel rejected the idea of increasing Europe’s bailout fund, weighed on the market. Also, retail sales for November rose 0.2%, which was lower than 0.6% rise expected. Early tech gains rally faded away, as Amazon and Intel led the sector in a retreat. Amazon fell 4.8% after the co. announced that it has extended the deadline for customers to get free shipping in time for Christmas by four days, to Dec. 19. Intel slid another 1.8%, a day after the chip giant cut its fourth-quarter sales outlook due to the impact of the hard-disk drive shortage. Implied volatility inched higher on moderate trading volumes.

Retreated on worries over Europe and outlook from Intel

2011-12-13T05:40:00.002-05:00

Stocks fell hard as doubts about a recent Europe accord and a lowered outlook by Intel spurred a broad-based sell-off after two weeks of gains. Tech stocks closed mostly in the red led by declines in Intel, which sank 4% after the co. cut projected revenue for the fourth quarter, saying supply shortages for hard drives had computer makers cutting back on orders for other parts. Intel’s warning comes on the heels of a revenue warning last week by Texas Instruments. Implied volatility inched higher on light trading volumes.
NEAREST RESISTANCE LEVELS: 57.8, 58.3, 59.0
NEAREST SUPPORT LEVELS: 55.8, 53.0, 50.0

Extended gains after positive news from EU

2011-12-11T13:03:00.004-05:00

The markets next week are expected to be driven by monetary policy decisions from the Fed, reaction to the latest developments in Europe and reports on November retail sales. Any further word from the Fed on new quantitative easing would help along with the euro situation. Another potential market mover will be the first-time jobless claims figures for the week ending Dec. 10. Analysts say that if the upcoming results are at or below last week’s figures it would be a sign that hiring is on the rise. Investors all over the world will be looking to Europe to determine how to bet on the markets.

Sinking on EU worries

2011-12-09T05:17:00.002-05:00

Stocks slipped as anxiety was high ahead of a crucial summit aimed at resolving the European debt crisis. The sell-off accelerated in the last 20 minutes of trading. In fact, investors ignored another round of positive US job numbers released Thursday morning. Investors also shrugged off news that the European Central Bank cut its key interest rate by a quarter-percentage point Thursday morning. We expect even more volatility today as bearish sentiment prevails. The dollar gained strength against the euro.

Drifting higher

2011-12-08T01:46:00.003-05:00

Investors bet that European leaders will produce a good solution to the debt crisis at a highly anticipated summit this week. Expectations are very high. U.S. Treasury Secretary Tim Geithner is in Europe this week to meet with top government officials, highlighting the growing concern in Washington about the eurozone debt crisis. Meanwhile, investors were unfazed by news that Standard & Poor's has placed the EU's long-term credit rating on review for a possible downgrade. Asia shares decline with Europe in view. The VIX implied volatility flirts with the 30 mark as the market remains nervous.

Ended mostly higher

2011-12-07T04:46:00.002-05:00

Investors remain optimistic that a lasting solution to the eurozone debt crisis will be announced this week. Meanwhile, the European Central Bank is widely expected to cut interest rates at its policy meeting Thursday. Shares of Taiwanese phone maker HTC were sharply lower ahead of a ruling on a key Apple patent suit. The dollar gained strength against the euro, but fell versus the euro and the Japanese yen. Europe stocks open higher on bailout fund repo.

Investors turned cautious

2011-12-06T00:28:00.004-05:00

The market moved higher after eurozone optimism increased on a Merkel and Sarkozy meeting that stressed a new eurozone treaty. Factory orders came in at -0.4%, dropping from -0.1% in September. ISM Services came in below expectations. Investors turned cautious following reports that Standard and Poor's may put eurozone nations on notice for possible downgrades. After rising about 1.5% earlier in the trading day, all three major indexes trimmed those gains. We expect more volatility later this week.

Trending higher

2011-12-05T06:02:00.002-05:00

Investors all over the world are looking to Europe to determine how to bet on the markets. The central banks' actions indeed sparked a rally with the Dow and the S&P 500 inking their best weekly gains since 2009. After this week's actions, investors are expecting that at next week's summit in Brussels, EU leaders will move forward with a plan for a fiscal union. There's a bias to the downside next week given that a lot of optimism was already priced in. There are few economic reports on tap. None of them are expected to reverse the mostly positive economic picture painted by the jobs, housing and manufacturing numbers released recently. European markets are on the rise.

Treaded water

2011-12-02T00:44:00.002-05:00

Traders worried that recent strong data could trigger a sell-off if Friday's jobs report falls short of hopes. Sentiment was underpinned by stronger-than-expected figures on U.S. factory activity, which came one day after private-sector payroll data also exceeded forecasts. On the upside, Yahoo gained 3.3% after news that Blackstone Group and Bain Capital, along with Asian partners, were preparing a bid for the Internet giant. The Shanghai Composite jumped 2.3%. European markets slipped.

Soaring on monetary policy easing

2011-12-01T01:14:00.002-05:00

The markets around the world jumped on Wednesday, after the Federal Reserve said it will work with other central banks to support the global economy. The coordinated market intervention gave investors hope to avoid a market paralysis stemming from Europe's debt crisis. Besides, better-than-expected reports on private-sector jobs, housing and Midwest manufacturing showed that the fundamentals just keep marching forward despite the market turmoil. The real economy seems indifferent to the EU debt headlines. Surveys released Thursday confirmed manufacturing activity in China slipped into contraction in November. The euro edged upward.

Inching higher

2011-11-30T01:10:00.002-05:00

Stocks finished mostly higher, as investors remained hopeful that leaders are making progress on addressing the eurozone debt crisis. Financial stocks, which led Monday's advance, were also among the losers Tuesday. Stocks also found support after the Consumer Confidence Index shot up to 56 in November from 40.9 the prior month. Economists were expecting the reading to come in at 42.5. U.S. home prices took a fall in September, according to a key index released Tuesday. Weakness in some large-cap Internet stocks weighed on the Nasdaq after strong gains in those stocks on Monday. Amazon dropped 3%. Decliners beat advancers on the Nasdaq by about 5 to 3.

Jumped on robust Black Friday sales

2011-11-29T02:33:00.002-05:00

The market posted strong gains following reports of strong Black Friday weekend sales and positive news from Europe. In fact, it was a bounce on good news, but we wouldn't expect a straight-up rise from this point. Investors will keep a close eye on the debt crisis in Europe, which could continue to spark jerky moves in the market. Amazon spiked after the online retailer said it sold four times more Kindles during this Black Friday weekend than the same period last year. Apple said that customers bought 14.8 iPads per hour, up 68% year-over-year. Implied volatility plunged as market fears faded away.

Looking for the bottom

2011-11-28T02:28:00.002-05:00

Pessimism over Europe's debt crisis have been whipsawing stocks. Last week, bond yields spiked amid a series of disappointing debt auctions, which further heightened fears and sent stocks about 5% lower. In the same time, economic data is getting better in the U.S., even in the job market. Total spending over the four-day weekend following Thanksgiving reached a record $52.4 billion, up 16% from $45 billion last year, according to a survey by the National Retail Federation released Sunday. However, the market is going to continue to be driven by what's happening in Europe.

Extended losses on global fears and jobless data

2011-11-24T03:32:00.001-05:00

Stocks extended losses as eurozone fears persisted and a preliminary report showed that Chinese manufacturing slowed sharply. Also, a lackluster report on the U.S. job market added to the gloomy mood. Initial jobless claims rose 2,000 in the latest week to 393,000, while analysts expected 391,000. Tech stocks closed mostly in the negative territory, with Pandora Media, Netflix and Groupon among the decliners ahead of the Thanksgiving Day holiday in the U.S. Netflix fell another $ 3% after the company said it plans to sell $400 million in stock and debt. It also warned it could post a loss for 2012. Groupon lost 15.5% on fears about rising competition. Pandora shed more than 11% after the co. reported upbeat quarterly results, but gave a forecast that could miss estimates. After the market close eBay advanced 1.2% ahead of the start of the holiday shopping season. In regular session retailers had been under pressure following data that consumer spending decreased in October. The slowdown in spending came as a worrying sign ahead of the key holiday sales period. Implied volatility surged above the 30 level on moderate volumes.

Closed in the red amid U.S. growth worries

2011-11-23T05:45:00.004-05:00

Stocks ended in the red amid worries about U.S. economic growth. But losses were trimmed after the IMF unveiled an enhanced lending program to help countries struggling with short-term liquidity problems from Europe's debt crisis. The U.S. GPD grew at a 2% annual rate in the third quarter, 0.5% slower than originally reported, according to the latest revision, meanwhile, analysts expected the estimate would remain unchanged - an annualized increase of 2.5%. Also, the market welcomed signs that the Federal Reserve is debating whether or not it should further ease monetary policy in the future. Tech stocks were mostly in the red, with losses from Hewlett-Packard after the co’s earnings forecasts failed to meet analysts expectations. Netflix fell more than 5%, as the co. said it’s selling $400 million in stock and debt in order to raise funds and that it could also see a disappointing year in 2012 if it doesn’t stem a tide of customer cancellations. Implied volatility inched lower on light trading volumes.
NEAREST RESISTANCE LEVELS: 54.7, 55.55, 55.8, 56.8, 58.1, 58.3, 59.1, 59.3
NEAREST SUPPORT LEVELS: 53.7, 53.0, 50.0

Sank on global downturn worries

2011-11-22T06:12:00.005-05:00

Stocks sank, as the lack of progress by American lawmakers in reaching a deficit-cutting agreement magnified worry that Europe’s debt crisis would spur a global downturn. Tech stocks joined broad-based sell-off, with Hewlett-Packard loosing 4% ahead of its first earnings report under new CEO Meg Whitman. LinkedIn fell almost 3% as approx. 24 million shares that had been under lockup since the co.’s initial public offering in May became available for sale or purchase on Monday. Research In Motion gave up 4.6% after JMP Securities cut its rating to underperform or sell, from market perform. In the evening trade HP rose 0.5% on better than expected results. Also, Brocade rose 5.6% after the upbeat earnings, meanwhile Analog Devices was virtually unchanged after slightly weaker than expected report. Implied volatility surge above the 30 level on moderate volumes.
NEAREST RESISTANCE LEVELS: 55.55, 55.8, 56.8, 58.1, 58.3, 59.1, 59.3
NEAREST SUPPORT LEVELS: ~~55.4~~, 54.3, 53.0, 50.0

Focus on debt developments

2011-11-21T05:37:00.001-05:00

Stocks rose as a gauge of leading indicators climbed, boosting views of the U.S. economy. Tech stocks closed in the red amid weakness in software stocks with Salesforce led the decline. The reported a third-quarter loss, but still managed to top the estimates, and gave up more than 10%. Along with Salesforce, other software companies also retreated, with losses coming from Oracle, Microsoft and VMware. Meanwhile Marvell climbed 6.5% a day after the co. reported a decline in its third-quarter income, but results surpassed estimates. Hewlett-Packard rose 2.6% ahead of its scheduled release of quarterly results on Monday. This week investors will likely to focus on European and U.S. debt developments, Spanish elections, reported failure to reach a U.S. deficit-reduction deal, and several data releases before the Thanksgiving holiday weekend. Implied volatility inched lower on massive trading volumes.

Extended losses on fears over Europe

2011-11-18T05:35:00.004-05:00

Stocks fell sharply as investors dumped risky assets on fears of more debt trouble in the eurozone. The selling gained momentum after the S&P 500 fell below 1,225, a key technical level that had been the recent moving average. The retreat came despite a series of better-than-expected economic reports. Initial jobless claims came in lower than expected at 388,000, the lowest numbers since April. The number of housing building permits jumped up 10.9% in October from the revised rate of 589,000 in September. Meanwhile, housing starts edged down 0.3% to an annual rate of 628,000 units in October. The Philadelphia Fed's Index still showed growth in the region, but barely, slipping to 3.6 in November from 8.7 the previous month. Tech stocks mostly closed in the negative territory, led by NetApp, which lost 12% after mixed quarterly results and disappointing forecast. Applied Materials declined 7.5% after the softer-than-expected sales and profit forecast. Rambus surged more than 23%, paring more than 60% loss in late trading on Wednesday after losing a price-fixing case against Micron Technology and Hynix Semiconductor. Implied volatility surged above the 30 level on huge trading volumes.
NEAREST RESISTANCE LEVELS: 55.8, 56.8, 58.1, 58.3, 59.1, 59.3
NEAREST SUPPORT LEVELS: ~~56.6~~, ~~56.3~~, 55.5, ~~55.8~~, 53.0, 50.0

Fell sharply on EU contagion fears

2011-11-17T06:02:00.002-05:00

Stocks fell sharply in the final trading hour, when investors got spooked by a Fitch report that outlined U.S. banks' exposure to contagion from European sovereign debt. Also, Italy's 10-year bond yield stayed above the 7%, following a lackluster reading on third-quarter eurozone economic growth. Tech stocks also closed in the red with Rambus led the decline slashing more than 60% following the decision by the Superior Court of the State of California ruled against the chip-technology company in a price-fixing case filed against Micron Technology Inc. and Hynix Semiconductor. Micron charged up more than 23%. Also, Dell lost 3.2% after stronger-than-expected earnings report and warning that its sales-growth outlook faces pressure. Autodesk was one of the top advancers rising 4.5% after better-than-expected results for its fiscal third quarter. Western Digital climbed 7% on reports that the European Commission was close to approving the disk-drive maker’s acquisition of Hitachi Ltd.’s hard-disk drive business. NetApp and Applied Materials each fell in the evening trade after the companies issued soft quarterly outlooks.
NEAREST RESISTANCE LEVELS: 58.1, 58.3, 59.1, 59.3
NEAREST SUPPORT LEVELS: ~~57.3~~, 56.6, 56.3, 55.8, 53.0, 50.0

Closed higher on stronger-than-expected economic data

2011-11-16T05:02:00.003-05:00

Stocks closed modestly higher, as a batch of better-than-expected U.S. economic data temporarily overshadowed concerns over Europe’s debt crisis. Retail sales climbed more than estimated in October, up 0.5%, the Federal Reserve Bank of New York’s index of economic activity edged upward — its first positive reading since May. Also, figures from the Labor Department had prices paid to wholesalers in October falling the most in four months, illustrating inflation backing off. Tech stocks put in a mostly upbeat performance, with Dell among the advancers as the PC giant was slated to give its quarterly results after the market close. Among tech stocks, IBM rose 0.75% a day after Berkshire Hathaway acquired a 5.4% share of IBM’s stock. Gains also came from Apple, Google, Hewlett-Packard and Broadcom. Microsoft also rose after its annual shareholders meeting. In the evening trade Dell was under pressure following a shortfall in its quarterly revenue, while Autodesk advanced following better-than-expected financial results. Implied volatility inched lower on light trading volumes.
NEAREST RESISTANCE LEVELS: ~~57.5~~,~~58.0~~, 58.3, 59.1, 59.3
NEAREST SUPPORT LEVELS: 57.3, 56.6, 56.3, 55.8, 53.0, 50.0

Retreated on fears over Italy

2011-11-15T05:22:00.004-05:00

Stocks retreated as Italy’s cost for borrowing climbed, pushing the euro lower, and heightening worries about the spread of Europe’s debt crisis. Boeing was the biggest advancer and climbed 1.5% after the co. snagged a $26 billion order from Oman Air, the flagship carrier of the Sultanate of Oman. Tech stocks followed the broad market and closed mostly in the red. IBM ended down a fraction after Warren Buffett said Berkshire Hathaway bought about $10.7 billion of its shares. Amazon.com, rose $1.54 a 3 after the co. announced that its newest Kindle products, including the Kindle Fire tablet, will ship earlier than expected. Western Digital and Seagate Technology closed in the red on concerns that the hard-disk industry is seen as suffering from production issues caused by the flooding in Thailand that could lead to higher PC prices after the first of the year. In the evening trade Symantec gained 3.9% as the co. and Huawei Technologies said Huawei will acquire Symantec’s 49% in Huawei Symantec Technologies Co. Ltd. for $530 million. Implied volatility inched higher on very light trading volumes.
NEAREST RESISTANCE LEVELS: 57.5, 58.0, 59.1, 59.3
NEAREST SUPPORT LEVELS: ~~57.7~~, 57.3, 56.6, 56.3, 55.8, 53.0, 50.0

All eyes on Italy and euro-area economic data

2011-11-14T03:58:00.002-05:00

Stocks closed higher, after a gauge of consumer confidence exceeded expectations and political moves in Europe assuaged investor concerns. Blue-chip advancers were led by Walt Disney Co., which rallied 6% a day after the co. reported a fourth-quarter profit that exceeded expectations. Tech sector also joined a broad market rally. Intel and Hewlett-Packard were among the biggest gainers, as each rose by more than 3%. After slipping earlier in the session, Nvidia also traded up 3.5%. This week investors will keep their focus on developments in the euro zone, with Italy poised to unveil an interim government, euro-area GDP and inflation data on tap, earnings from tech bellwether Dell and U.S. retail sales and inflation figures may. Implied volatility inched lower on moderate trading volumes.
NEAREST RESISTANCE LEVELS:~~56.9~~, ~~57.0~~, ~~57.8~~, 58.0, 59.1, 59.3
NEAREST SUPPORT LEVELS: 57.7, 56.6, 56.3, 55.8, 53.0, 50.0

Bounced back on strong jobless data

2011-11-11T05:27:00.003-05:00

Stocks bounced back from a steep sell-off a day earlier, as Italian bond yields eased slightly and initial unemployment claims reached a 7-month low. Also, solid earnings from Cisco lifted the mood. Tech stocks mostly closed in the green with Cisco advancing 5.7% on upbeat profit and sales. Electronics contract manufacturers that rely on Cisco for big pieces of their business were mostly upbeat, including Jabil Circuit and Celestica. Meanwhile, Apple slid 2.6% on worries that the company might ship fewer iPad tablets this year because of supply issues. After the close Nvidia extended gains, rising 2.3% on stronger-than-expected third-quarter earnings. Implied volatility declined below the 30 level on moderate volumes.
NEAREST RESISTANCE LEVELS: 56.9, 57.0, 57.8, 59.1, 59.3
NEAREST SUPPORT LEVELS:56.6, 56.3, 55.8, 53.0, 50.0

Hit hard by a broad market sell-off

2011-11-10T05:32:00.002-05:00

Stocks sold off sharply after Italy's 10-year bond yield spiked above 7%, the highest since the euro was launched in 1999. The 7% figure is a psychological trigger for investors since it was the level that heightened worries about Greece, Ireland and Portugal. The selling intensified in the afternoon amid reports that European Union officials said they have no plans to rescue Italy. Tech stocks were hit hard by a broad market sell-off, as Adobe Systems and Computer Sciences led the decline after weaker-than-expected earnings and disappointing corporate news. Microsoft and AOL also saw their stocks in retreat, a day after announcing a new online advertising partnership with Yahoo in a bid to challenge Google’s dominant market position. After the close Cisco rose 2.8% on upbeat earnings. Implied volatility surged above the 30 level on massive volumes. Any reading above 30 signals investor worry.
NEAREST RESISTANCE LEVELS: 57.0, 57.8, 59.1, 59.3
NEAREST SUPPORT LEVELS: ~~58.8~~, ~~57.2~~, ~~56.4~~, 56.3, 55.8, 53.0, 50.0

Posted solid gains

2011-11-09T04:30:00.003-05:00

Stocks closed higher in volatile session after reports Silvio Berlusconi would resign as prime minister of Italy as the country works to reign in its debt. Berlusconi offered to step down as soon as Italy’s Parliament approves austerity measures in a vote expected to occur next week. Tech stocks also rose with Priceline.com and Demand Media leading the gains, as investors reacted to the companies’ respective financial results. Also, Activision Blizzard gained 1.4% to close at three –years high, after the co. launched “Modern Warfare 3,” part of its blockbuster “Call of Duty” franchise, and most analysts expect it to be the industry’s top-selling title of the year. In the evening trade Adobe Systems slid after the the co. outlined plans to cut jobs and lowered its quarterly earnings projection, while Yahoo bounced higher following a report about a possible effort to purchase the online search firm. Implied volatility inched lower again on modest volumes.

Gained in a choppy session

2011-11-08T05:04:00.003-05:00

Stocks managed to close higher in a choppy session. Investors have shifted their focus to Italy, as it appears Greece is finally getting its house in order. Published reports said that a European Central Bank official said the sovereign debt crisis could be resolved in the next two years. Speculation that Italian Prime Minister Silvio Berlusconi would resign gave a lift to Italian stocks, though they pared gains after Berlusconi announced that he didn’t plan to leave. Among the movers, Amgen jumped 5.9% after the co. said it would repurchase up to $5 billion of its stock and Dish Network gained 5% on an announcement that it would pay a $2 a share dividend. Tech stocks also performed well with Hewlett-Packard posting solid gains of 3.4%. Nvidia fell a fraction after FBR Capital reported that it expects generally in-line results and outlook, citing “ongoing concerns” about the co’s core graphics chip business in the face of stiffer competition from rivals Intel and Advanced Micro Devices. Also Netflix rose nearly 1% to after the co. announced a subscription-streaming service deal with Metro-Goldwyn-Mayer Studios in the U.K. and Ireland. Implied volatility inched lower on modest volumes.
NEAREST RESISTANCE LEVELS: ~~58.05~~, 58.25, 58.5, 59.1, 59.3
NEAREST SUPPORT LEVELS: 57.2, ~~57.7~~, ~~57.5~~, 56.4, 56.12, 55.8, 53.0, 50.0

Europe and China in focus

2011-11-07T05:20:00.005-05:00

Stocks mostly fell as investors were focused on Europe. Meanwhile the jobless rate unexpectedly fell in October, to a six-month low of 9% from 9.1% in September, payrolls rose by 80,000 last month, a bit less than expected, but gains for August and September were revised higher. Tech stocks closed with mixed results highlighted by reaction to LinkedIn’s disappointing earnings results and stock-offering plan and Groupon ’s initial public stock offering. Groupon climbed 30.6% as the co. made its public debut after initially pricing its share at $20 each. Advanced Micro Devices fell after the co. said it would cut about 1,400 jobs due to slowing sales of PCs. This week investors will focus on European sovereign debt developments as earnings season is almost over. Among big names, Cisco Systems, Macy’s, Walt Disney Co. and Nvidia report results. On the U.S. economic calendar, consumer credit data and foreign trade for September, November consumer sentiment data come out this week. Also, China’s monthly economic figures, including consumer and producer inflation, industrial output and retails sales, will be closely-watched on Wednesday. Implied volatility jumped to the 27.5 level on light trading volumes.
NEAREST RESISTANCE LEVELS: 58.05, 58.2, 58.5, 59.1, 59.3
NEAREST SUPPORT LEVELS: 57.7, 57.5, 56.4, 56.12, 55.8, 53.0, 50.0

CLOSED SIGNIFICANTLY HIGHER

2011-11-04T03:45:00.001-04:00

Investors focused on the European Central Bank’s surprise rate cut and mostly shrugged off fears over Greece. However, it remains unclear whether or not Greece will put its bailout to a public vote. Shares of investment banking firm Jefferies (JEF) were temporarily halted after the stock dropped roughly 20% on fears about the company’s European sovereign debt exposure. Qualcomm climbed after the chipmaker issued a better-than-expected sales forecast for fiscal 2012, citing growing demand for smartphones. The dollar was lower against the euro, the British pound and the Japanese yen.

Posted gains after the Fed and payrolls

2011-11-03T05:52:00.003-04:00

Stocks finished sharply higher after the Federal Reserve noted the economy strengthened in the third quarter. Fed Chairman Ben Bernanke reiterated that the Fed remains ready to take action to ensure the recovery continues. Also, ADP reported a jump in private-sector payrolls in October and revised its previous month higher. ADP's new September figure showed an increase of 116,000 jobs, up from the earlier report of 91,000. Separately, a jobs report from Challenger showed planned layoffs dropped 63% to 42,759 in October from the prior month. The markets also weighed reports related to the Greek Prime Minister’s decision to hold a national vote on a rescue plan for the nation. Tech stocks put in a mostly upbeat performance. AOL reported better-than-expected quarterly results prior to the start of trading and rose 12.5%. Also Garmin posted upbeat third-quarter report. In the evening trade Qualcomm surged 9.4% following the co.’s stronger-than-expected earnings and first-quarter adjusted guidance. Implied volatility inched lower on a very light trading volumes.
NEAREST RESISTANCE LEVELS: ~~56.5~~, 56.95, 58.2, 58.5, 59.1, 59.3
NEAREST SUPPORT LEVELS: 56.4, 56.12, 55.8, 53.0, 50.0

Plunged across the board

2011-11-02T06:40:00.003-04:00

Stocks ended sharply lower across the board on new fears about the fate of the European rescue plan. Greek Prime Minister George Papandreou announced that he would put his country's participation in last week's European debt plan to a voter referendum. Also, the European Commission and the European Council released a statement urging Greece to accept the bailout, which would lower Greece’s debt level to 120% of gross domestic product by 2020 and establish a new program of loans for the country. Bank stocks were hit especially hard. Meanwhile, Bank of America said it will drop its planned $5 debit card usage fee after widespread customer complaints. Tech sector also recorded losses. Google fell 2.4% after the co. began rolling out updates to its Google TV service which so far hasn’t garnered much attention from consumers. Yahoo gave up 4.5% as the co. said it would buy advertising technology firm InterClick for $270 million. Nvidia lost 5% following the downgrade from buy to hold at Canaccord over concerns about the markets for personal computers and smartphones. Leap Wireless International rose almost 11% on reported a net gain in subscribers after analysts had forecast a loss. Implied volatility soared to the 30 level on moderate volumes.
NEAREST RESISTANCE LEVELS: 56.5, 56.95, 58.2, 58.5, 59.1, 59.3
NEAREST SUPPORT LEVELS: ~~57.1~~, ~~56.6~~, 56.12, 55.8, 53.0, 50.0

Finished the month on a weak note

2011-11-01T06:01:00.003-04:00

Stocks ended sharply lower, as investors continued to scrutinize the eurozone debt deal and a surge in the U.S. dollar hit commodities and other risky assets. Also, Chicago manufacturing index expanded in October, but at a slower pace than expected. Trading was halted in shares of MF Global Holdings, with the futures brokerage filing for Chapter 11 bankruptcy protection. Tech stocks also slid in to the red with the broad market. SanDisk fell 5% after the rating cut from buy to neutral at Stern Agee. Yahoo was hit after Bloomberg reported the co. would likely sell assets in Asia rather than pursue a sale of the company. Implied volatility jumped above the 25 level on modest trading volumes.
NEAREST RESISTANCE LEVELS: 58.2, 58.5, 59.1, 59.3
NEAREST SUPPORT LEVELS: ~~58.9~~, ~~58.55~~, 57.1, 56.6, 55.8, 53.0, 50.0

All eyes on the U.S. economy

2011-10-31T05:46:00.004-04:00

Stocks finished mostly higher as markets cheered the European deal to shore up euro-zone banks and boost the firepower of its rescue. Also, Hewlett-Packard and Advanced Micro Devices made solid gains and pushed the tech sector higher. H-P picked up 3.5%, after an announcement that it was keeping its PC business. AMD jumped 7.2% on better-than-expected results for the third quarter and forecasted earnings slightly ahead of estimates. This week investors will turn to the fundamentals of the U.S. economy. All eyes will be on the Chicago and ISM manufacturing indexes, the Fed’s monetary-policy meeting and the October unemployment report. In other economic data, auto and retail same-store sales for October. Aside from the economy, Comcast and Prudential Financial are among heavy-hitters this week, as both companies to report earnings. The stock market is approaching key technical levels, this week will show whether these levels can become floor or ceiling for this current move. Implied volatility inched lower to the 23 level on the lightest trading volumes.
NEAREST RESISTANCE LEVELS: 59.1, 59.3
NEAREST SUPPORT LEVELS: 58.9, 58.55, 57.1, 56.6, 55.8, 53.0, 50.0

Rallied on European deal

2011-10-28T06:36:00.003-04:00

Stocks surged after European Union leaders agreed to expand Europe's bailout fund and take major losses on Greek bonds. Banks were leading the way in U.S. trading. Also, third-quarter GDP increased at an annual rate of 2.5%, in line with expectations. Jobless claims eased by 2,000 to 402,000 last week, also in line with expectations. Tech sector joined in a broad rally sparked by news of a European deal. Akamai Technologies soared more than 15% after the co.’s better-than-expected results. Citrix also jumped more than 17% after higher profit and an outlook that beat expectations. Symantec slumped more than 4% after inline-results and JMP Securities comment. After the close AMD popped 4.9% higher, following stronger-than-expected earnings report. Implied volatility inched lower on moderate trading volumes.
NEAREST RESISTANCE LEVELS: ~~57.45, 57.6, 58.2, 58.7~~, 58.85, 59.1, 59.3
NEAREST SUPPORT LEVELS: 58.65, 57.1, 56.6, 55.8, 53.0, 50.0

Closed in the green on Europe hopes

2011-10-27T06:14:00.003-04:00

Stocks posted solid gains, after Europe reached an agreement in principle on a bank-recapitalization plan and on better-than-forecast earnings from corporations including Boeing and Ford. New orders for manufactured durable goods decreased 0.8% in September, while analysts had expected orders to drop 1%. Tech stocks closed mixed with F5 Networks providing some support to the sector after the co.’s upbeat results. But the sector was weighed down by slumping shares of Amazon and Broadcom. Amazon gave up 13% after lower-than-expected earnings for the third quarter and a disappointing forecast for the current period. Broadcom moved down a fraction, also on a weak forecast. Implied volatility inched lower on light trading volumes.
NEAREST RESISTANCE LEVELS: 57.45, 57.6, 58.2, 58.7, 59.3
NEAREST SUPPORT LEVELS: 57.1, ~~56.8~~, 56.6, 55.8, 53.0, 50.0

Dropped on Europe and earnings jitters

2011-10-26T05:37:00.004-04:00

Stocks tumbled, as investors geared up for a key summit on Europe's debt crisis. Also, consumer confidence fell sharply to 39.8 in October - its lowest reading since March 2009. Home prices edged up 0.2% for a fifth straight month in August, but remain down 3.8% on a yearly basis. 3M and Cummins fell sharply ondisappointing earnings. Tech sector closed in the red dragged down by a huge decline by Netflix. Netflix plummeted almost 35%, a day after the company announced it lost 800,000 U.S. subscribers in the quarter. Texas Instruments gave up 2.3% a day after the chip maker reported a drop in profit. IBM said its board has authorized $7 billion in additional funds for a company stock buyback program and lost 1%. After the close Amazon lost 13% lower following the report of a 73% fall in third-quarter earnings. Broadcom fell 4.6% after disappointing earnings forecast. Investors are awaiting a European summit today, when government heads have pledged to unveil a comprehensive plan to tackle the region's debt crisis. Implied volatility inched higher on very light volumes.
NEAREST RESISTANCE LEVELS: 57.55, 58.0, 58.2, 58.7, 59.3
NEAREST SUPPORT LEVELS: 57.0, 56.8, 55.8, 53.0, 50.0

Rallied on earnings and mergers

2011-10-25T05:46:00.003-04:00

Stocks rallied after Caterpillar’s upbeat results and some merger-and-acquisition deals pulled in buyers. U.S. housing finance agencies unveiled changes aimed at helping troubled homeowners, who owe more than 125% of the market value of their homes, to get new loans. Tech sector advanced on gains in Apple and chip stocks. Also in the spotlight was RightNow Technologies which soared 19.4% after Oracle said it will acquire the co. for $1.5 billion or $43 a share. HealthSpring soared 34% after Cigna agreed to pay $3.8 billion in cash to acquire the company. Also Google rose 1% on media-report that the co. has talked with at least two private-equity firms about financing a deal to acquire Yahoo, which rose 3.7% after the report. In the evening trade Netflix slid 27% as the co. said it expects fourth-quarter earnings of $0.36 to $0.70 a share, sharply below expectations. Texas Instruments also fell 0.9% after weaker-than-expected earnings forecast. Implied volatility inched lower on very light trading volumes.
NEAREST RESISTANCE LEVELS: ~~57.8, 58.3~~, 58.5, 58.6, 58.7, 59.3
NEAREST SUPPORT LEVELS: 58.4, 58.3, 57.0, 56.8, ~~56.5~~, 55.8, 53.0, 50.0

All eyes on Europe

2011-10-24T05:49:00.003-04:00

Stocks surged, as optimism ahead of a weekend European Union summit, the past days’ economic data, and McDonald’s upbeat earnings triggered buying momentum. General Electric fell 1.9%, after the co. reported in line with estimates, and analysts noted a slower growth in industrial orders. Tech stocks closed mostly in the green, propelled by gains from Seagate Technology, SanDisk and Altera. Altera issued a softer-than-anticipated guidance, but Citigroup speculated that the company was being conservative as he advised clients to “buy the current pullback. This week investors will focus on European headlines as officials hold crucial meetings on measures to avoid a spiralling sovereign-debt crisis. In U.S. economic data, the Conference Board’s and the University of Michigan’s October consumer-confidence surveys are slated for Tuesday and Friday respectively. Also, the quarterly U.S. GDP report on Thursday is expected to grow 3% in the third quarter — the strongest performance in five quarters, led by a rise in consumer spending. Implied volatility inched lower on moderate volumes.
NEAREST RESISTANCE LEVELS: ~~56.7, 56.8~~, 57.8, 58.3, 59.3
NEAREST SUPPORT LEVELS: 57.0, 56.8, ~~56.5~~, 55.8, 53.0, 50.0

Closed with mixed results

2011-10-21T05:26:00.001-04:00

The market ended mixed, as European leaders confirmed that they will meet multiple times over the next week to approve a key plan to resolve Europe's debt crisis. Also, the Greek parliament passed the latest package of austerity measures. Initial jobless claims fell by 6,000 to 403,000 in the latest week, which was in line with expectations. Tech sector cut its losses, but closed with mixed results following a series of disappointing earnings reports and outlooks from eBay and Lam Research, and fears about a slowdown in hard-drive production. Western Digital announced that it expects to see a big drop in its December quarter sales due to having to close some production facilities in Thailand after months of flooding in the country. That outlook pushed down Dell and Hewlett-Packard as both companies are customers of WD. After the close Seagate advanced 10% on upbeat earnings but cautioned that there will be a significant impact on the industry from flooding in Thailand. Microsoft was off 1.2% after the co. reported results in line with estimates. Implied volatility inched higher on light trading volumes.
NEAREST RESISTANCE LEVELS: 56.7, 56.8, 57.8, 58.3, 59.3
NEAREST SUPPORT LEVELS: 56.5, 55.8, 53.0, 50.0

Closed lower after a pessimistic economic report

2011-10-20T04:13:00.004-04:00

Stocks closed lower, after the Federal Reserve released a pessimistic report on regional economic activity. Markets were sensitive to media reports on possible European efforts to leverage their bailout fund. The latest economic report showed CPI was up 3.9%, the biggest annual change in 3 years, while inflation came in as expected, with the CPI rising 0.3% during the month. Housing starts were stronger than expected, while permits for future building fell. Tech stocks put mostly closed in the red, as losses from Apple highlighted the day’s action, while advance in Yahoo and Intel failed to support the sector. Apple fell 5.6% after the earnings that missed analysts’ forecasts. Yahoo and Intel climbed 3%and 3.6% respectively following stronger-than-expected earnings. After the closing bell Ebay fell 3.7% after the co. reported earnings in line with analysts’ estimates. Implied volatility spiked above the 30 level on moderate trading volumes.
NEAREST RESISTANCE LEVELS: 59.3, 58.3, 57.8, 56.9
NEAREST SUPPORT LEVELS: 50.0, 53.0, ~~57.0~~, ~~57.9~~, 56.75

Soared on hopes for Europe

2011-10-19T05:35:00.002-04:00

Stocks surged following a report that Germany and France had reached an agreement to increase the firepower of Europe’s recently overhauled bailout fund. Meanwhile, Standard and Poor’s downgraded two dozen Italian banks with a negative outlook. Tech stocks put in a mostly upbeat performance, but losses from IBM stood out after the tech heavyweight provided a mixed quarterly report that indicated weakening sales to its core business customers. Yahoo, Apple, Intel and Juniper all rose in advance of quarterly results after the market close. In the evening trade Intel and Yahoo edged higher after the report impressed investors, while Apple declined after the co. announced quarterly earnings and sales that fell far short of expectations. Futures fell after Moody’s Investors Service downgraded Spain’s government bond ratings to A1 from Aa2, with a negative outlook. Implied volatility inched lower on moderate volumes.
NEAREST RESISTANCE LEVELS: 59.3, 58.3, 58.2, ~~57.7~~
NEAREST SUPPORT LEVELS: 50.0, 53.0, 57.0, 57.9

Worries about Europe dominated

2011-10-18T04:59:00.000-04:00

Stocks fell sharply after Germany played down the idea of a quick fix for Europe and an index of regional manufacturing fell short. German Finance Minister Wolfgang Schaeuble said that a final solution to Europe’s debt crisis is unlikely to come out of the upcoming meeting on Oct. 23. Also, Wells Fargo fell 8.4% after the co. reported a third-quarter revenue decline and dragged financials down. Separately, industrial production rising 0.2% in September on increased demand for computers and cars. Hewlett-Packard slipped 4.8% on speculations that the co. could be hit by flooding in Thailand which hurt manufacturing operations of Western Digital. Apple said it sold more than four million units of its iPhone 4S over the weekend after the product’s launch on Friday, but slipped 0.5% ahead of earnings report. In the evening trade IBM lost 3.8% as its quarterly results failed to impress the market. Implied volatility surged to the 28 level on very light trading volumes.

Earnings season kicks into high gear

2011-10-17T04:06:00.004-04:00

Stocks posted strong gains, after better-than-expected retail sales and Google’s earnings lifted sentiment. Retail sales increased 1.1% increased in September, the largest growth since February. Tech sector also closed on the positive side led by gains in Apple and Google. While Europe's debt crisis will remain a focus this week, investors will also have a barrage of corporate financial results. Apple is slated to give its fiscal fourth-quarter results after Tuesday’s market close. Several big banks are set for earnings reports as well, but enthusiasm for their results is muted following a disappointing quarter for earnings from on J.P. Morgan. There are also several economic reports, including industrial production, inflation and housing data, that could have some bearing on investors’ confidence. Implied volatility inched lower on moderate volumes.

Closed mixed on weakness in banks

2011-10-14T05:44:00.000-04:00

Stocks closed mixed, with the S&P 500 finishing in the red after disappointing earnings from J.P. Morgan Chase. Banks led the decline. Meanwhile, tech stocks posted gains on advance in chip companies, AOL and ahead of results from Google after the close. RIM slid more than 1% as company co-Chief Executive Mike Lazaridis apologized to customers for the disruption of BlackBerry services, even as the company announced that service has been “fully restored”. Among economic news, Slovakia became the final euro area country to ratify overhauling the European Financial Stability Facility (EFSF). Also, jobless claims fell 1,000 to 404,000 (vs. 406,000 expected), continuing claims slipped to 3.67 million, slightly below estimates for 3.7 million. In the evening trade Google soared 6.3% following the upbeat earnings of $9.72 a share (vs. $8.74 a share estimated). Implied volatility stepped down to the 27 level in light trading.

Rose on hopes for Europe

2011-10-13T05:30:00.001-04:00

Stocks jumped, as investors welcomed the latest plan to recapitalize European banks. But a broad rally lost steam during the final minutes of trading. European Commission president J.M. Barroso said that policymakers need to act immediately to resolve the long-running crisis, and banks that do not satisfy capital requirements should be barred from paying out dividends and bonuses. Tech stocks mostly closed with gains. Apple rose 0.5% as the co. rolled the latest version of its mobile operating system. Also, analysts speculates that a lower-priced ‘iPad mini’ is coming. On the downside, Research In Motion fell 2.2% on reports of more disruptions in its BlackBerry message service. Brocade Communications dropped 7.6% after J.P. Morgan downgraded it to underweight from neutral, citing “muted long-term growth prospects.” Implied volatility inched below the 30 level on moderate trading volumes.

Ended mixed on uncertainty over European bailout fund

2011-10-12T05:47:00.001-04:00

Stocks ended a low-volume session flat, as investors await the next step after Slovakia rejected a plan to expand the European bailout fund. Tech stocks also ended mixed, while Apple, Juniper and Research in Motion posted solid gains. RIM jumped 5.1% after an activist shareholder issued a release claiming additional support in its campaign against the company’s current management team. Also, European Commission President Jose Manuel Barroso said he would unveil a proposal for recapitalizing European banks on Wednesday. In the evening trade Alcoa dropped 5% after the co. announced a quarterly profit of $0.15 a share, which was short of estimates of $0.22 a share and affirmed a forecast for a growth rate of 12% for 2011. Implied volatility inched lower on light trading volumes.

Rallied on Europe bank pledge

2011-10-11T05:00:00.001-04:00

Stocks posted strong gains, as France and Germany pledged to do everything necessary to support Europe’s banks. Tech stocks also closed in the green, with Micron and Apple led the gains. Apple added 5.1% after saying pre-orders for its new iPhone 4S exceeded 1 million units in the first 24 hours. Micron jumped 4.2% after Citigroup upgraded the chip company’s rating to buy from hold. Meanwhile Netflix turned down 4.8% after saying it’s canceling plans to offer DVDs by mail under a new company name. Third-quarter results season unofficially starts after the close today with figures from Alcoa. Implied volatility inched lower on moderate trading volumes.

Earnings and Europe in focus

2011-10-10T05:26:00.001-04:00

The market closed lower, as credit-rating cuts for Italy and Spain offset a better-than-anticipated payrolls report. Employers added 103,000 workers in September after a revised 57,000 increase the month before, the unemployment rate remained at 9.1%. Fitch cut its credit ratings for Italy and Spain and Moody’s downgraded 12 U.K. banks. Tech stocks closed in the red, with Apple among the decliners. Also, Sprint Nextel fell 20% after the co. said it would need to raise more capital to expand a high-speed data network. This week investors will focus on earnings season start, retail sales and consumer sentiment data. Alcoa, JPMorgan and Google scheduled to report Q3 earnings this week. Implied volatility inched below the 35 level on light trading volumes.

Rallied on Europe and jobless claims data

2011-10-07T05:38:00.003-04:00

Stocks rallied for a third straight day, as investors turned optimistic, following the ECB’s latest policy measures aimed at boosting liquidity in the European banking system. Meanwhile initial jobless claims data showed that 401,000 Americans filed for unemployment claims last week, which was below economists' expectations of 402,000 but above the previous week's revised figure of 395,000 claims. Tech stocks put in a broad gains, but Apple retreated after the death of Steve Jobs. Investors will keep a close watch on Apple, as they consider what his loss will mean for the company's long-term success. Analysts maintained bullish views on Apple, saying the company is in good shape with its current management team despite the significant contributions made by Jobs over the years.Also, Yahoo fell 1.7% after AllThingsD reported that Microsoft wasn’t interested in pursuing a bid for the co. Implied volatility inched lower on light volumes.

Rose sharply on better-than-expected economic news

2011-10-06T05:40:00.001-04:00

Stocks rose sharply for a second day after reports cast a better-than-expected light on the U.S. economy and optimism increased that Europe would recapitalize its banks. ADP reported U.S. companies added 91,000 jobs (vs. 45,000 estimated) in September, with the rise following a revised 89,000 gain the month before. The number of planned job cuts doubled in September to 115,730 from August’s 51,114, according to Challenger, Gray & Christmas, the highest number of since April 2009. Tech stocks rose broadly, with Apple, Cisco, Hewlett-Packard and Research In Motion among the winners. H-P rose 3.7%, but the co. was hit with a J.P. Morgan note resuming coverage with an underweight rating. RIM soared more than 12% on yet more buyout talk, this time involving Vodafone. Yahoo rose 10% after a report by Reuters that Microsoft was considering another bid for the Internet giant. Apple rebounded after dropping Tuesday, as investors signaled disappointment after the co. unveiled its newest generation of the iPhone but failed to live up to the hype over expectations of a radically changed iPhone 5. Implied volatility inched lower on moderate volumes.

Eked out solid gains

2011-10-05T05:05:00.003-04:00

Stocks closed significantly higher, despite clocking large losses through much of the day, after a report that European officials were moving toward a plan to recapitalize the region’s banks. Also, in testimony to the Joint Economic Committee of Congress, Fed chief Bernanke said the central bank was ready to take more action if necessary to bolster the U.S. economic recovery. Tech stocks staged a late rally. Apple partially recovered to end down 0.6% as the co. demonstrated the new iPhone 4S, and cut the prices of its line of iPods. Apple also said that Sprint Nextel would get the iPhone 4S and become the third U.S. carrier after AT&T and Verizon to carry the iPhone. Yahoo edged 6.9% higher, as speculation grew about Alibaba Group Chief Executive Jack Ma’s interest in making a bid for the online company. Implied volatility dropped sharply below the 40 level on moderate trading volumes.

Dropped again on worries over Greece

2011-10-04T04:18:00.000-04:00

Stocks dropped to their lowest closing levels since September 2010, as worries over Greece’s debt crisis overwhelmed a report showing slightly stronger U.S. manufacturing activity. Greece miss key deficit targets for this year and next, according to the draft budget announced by the Greek cabinet late Sunday. Losses washed over the tech sector, with Yahoo one of the few gainers as Alibaba Group CEO Jack Ma told a conference at Stanford University on Sunday that he was “interested” in buying Yahoo.Amazon was upgraded by Stifel Nicolaus, to buy from hold, but fell almost 2%. Also, Apple gave up almost 2% ahead of an event scheduled for Tuesday, at which the company is expected to unveil its latest iPhone. Oracle fell nearly 3% as the co. kicked off its annual OpenWorld conference. Implied volatility inched higher on moderate volumes.

Turbulent week ahead

2011-10-03T04:00:00.003-04:00

Stock enhanced losses as worries over Europe’s debt trumped mixed economic data, closing a turbulent third quarter that counted as the worst for the major indexes since the depths of the financial crisis. Consumer sentiment rose to 59.4 in September, recovering from a nearly three-year low of 55.7 in August.Chicago manufacturing activity index rose 60.4 in September from 56.5 in August. Meanwhile, personal income in August fell a seasonally adjusted 0.1%, the first decline since October 2009, while consumer spending increased a seasonally adjusted 0.2%. Tech stocks headed south led by losses in Micron Technology, which slid on disappointing earnings. Also, Gartner reported that semiconductor capital equipment spending is expected to total $35.2 billion in 2012, down 19.2% from the projected 2011 total of $43.5 billion. Investors are poised for a busy week, with domestic data due on manufacturing, employment and auto sales, and the global spotlight on Europe, particularly ongoing efforts to stave off a Greek debt default. Also, Apple is holding an event where it is widely expected to unveil the iPhone 5 as well as the launch of the latest update to its iOS mobile operating system and its iCloud service. Implied volatility surged above the 40 level on moderate trading volumes.

Sank on weakness in AMD and Netflix

2011-09-30T04:24:00.001-04:00

Stocks ended a choppy session higher, as investors parsed through positive news in U.S. and Europe. Germany's parliament approved expanded powers for the eurozone's bailout fund. Europe's debt crisis has kept investors on edge for months. Modestly improved economic numbers, including GDP growth at 1.3% and roughly 391,000 new unemployment claims last week, still indicate that the U.S. economy is sputtering. Advanced Micro Devices and Netflix fell sharply and the rest of the tech sector gave up earlier gains from a broad market uptick. AMD fell after a statement lowering its expected revenue gain for the third quarter to a range of 4%-6%. Research In Motion fell more than 3% after the co. issued a statement denying an earlier analyst report that claimed it was considering an exit from the tablet business following disappointing sales of its PlayBook. Among few tech gainers were Hewlett-Packard, Oracle, and IBM. In the evening trade Micron lost 3.4% after the co. reported a net loss of $0.14 a share in its fiscal fourth quarter, while analysts had expected earnings of $0.01 a share. Implied volatility inched higher on moderate volumes.

Down on worries over global growth prospects

2011-09-29T05:30:00.001-04:00

Stocks closed down as worries over stalled global growth prospects and concerns that European leaders may not be moving fast enough to solve the region’s debt problems persisted. Tech stocks slid into the red as falling semiconductor shares weighed the sector down. The chip retreat was led by Advanced Micro Devices, which fell 5.2%, while SanDisk declined 3.3%. Amazon ended up 2.5% after the co. unveiled its Kindle Fire tablet computer, a device both less costly and smaller than Apple’s iPad. Microsoft lost only 0.4%, after the co. said it would expand a partnership with South Korea’s Samsung. After-hours Jabil Circuit rose 8.4% on upbeat earnings and a stronger-than-expected outlook. Seyrafi initiated coverage of Cisco Systems with an outperform rating, but Cisco fell 1.4%. AMD retreated 9.1% after the co. cut its third-quarter sales forecast, citing manufacturing issues. Intel fell 1.3% after announcement that the co. and Samsung Electronics would support a new operating device for mobile devices and other products. Implied volatility surged higher on very light volumes.

Rose for a third day

2011-09-28T05:35:00.004-04:00

Stocks rose, ending higher for a third day, as investors grew more optimistic about Europe's debt crisis being resolved. nBut the advance lost momentum in the final hour of trading after a report in the Financial Times raised questions about a proposed second bailout for Greece. The plan to avert a Greek default faces a key vote Tuesday. Meanwhile, mounting debt could weigh on banks throughout Europe well into 2012. Tech stocks joined a broader market rally. Hewlett-Packard gained 3.9%, IBM rose 1.8%, Intel added 1.4%. Research In Motion jumped 4.5% on a report from Reuters the investor Carl Icahn had acquired a stake in the BlackBerry manufacturer. Other sector notables also posting gains included Oracle, Google and Dell. Apple slipped nearly 1% a day after speculation that it may be scaling back iPad production. Also on the downside, Amazon fell 2.5% ahead of widely expected introduction of its tablet product on Wednesday. Implied volatility inched lower on moderate volumes.

Surged on hopes for Europe and corporate news

2011-09-27T05:26:00.001-04:00

Stocks surged to finish near the highest levels, amid high hopes that Europe’s debt crisis is headed toward resolution.Tech sector got a boost from gains in Neftlix, Amazon and AMD. Neftlix moved up 2.2% after the co. unveiled a distribution deal with DreamWorks. Amazon gained 2.8% on an announcement of a digital distribution deal with 20th Century Fox. Advanced Micro Devices gained 3.7% after UBS upgraded the chip company’s stock to buy from neutral. Apple dropped 0.3% on concerns the company may be cutting its fourth-quarter production of iPads, restricted the technology sector’s gains. Implied volatility little changed on light trading volumes.

Europe and the U.S. economic data in focus

2011-09-26T04:26:00.001-04:00

Stocks ended higher but tumbled for the week, with investors alert to any sign of policy makers acting further to bolster the global economy. Tech stocks mostly closed with gains, while Hewlett-Packard lost 2% as analysts focused on the enormous challenges faced by CEO Meg Whitman. Speaking in Washington at an international banking conference, Greek finance minister said Sunday that his country will do "whatever it takes" to meet its financial obligations. Investors worry that a Greek default will drag down other European economies struggling with weak growth as unsustainable levels of debt could quickly spread financial woes across borders and oceans. Also, this week investors will be giving hawk-like attention to the U.S. economy data or consumer spending, especially after the Federal Reserve's statement Wednesday noting "significant downside risks" to the economy. Implied volatility inched lower on light trading volumes.

Tumbled on fears about the global economy

2011-09-23T04:16:00.000-04:00

Stocks tumbled amid widespread selling of stocks and commodities on escalated fears about the global economy. Hewlett-Packard led a broad-based selloff in tech stocks after a report surfaced that Meg Whitman, the former eBay chief, was expected to be named chief executive of the co. after the closing bell. H-P was down 5.4%. The top decliners for the day included Dell, Cisco, Microsoft, Google, Advanced Micro Devices, Nvidia and Salesforce. Yahoo was off by down 1.7% after an earlier gain following the upgrade to buy from hold by Stifel Nicolaus. Apple gave up 3% after reports saying Apple will have an event in early October to introduce the next version of the iPhone. Implied volatility spiked to the 37 level on huge trading volumes. Any reading above 30 signals investor worry.

Slipped on Fed news

2011-09-22T05:50:00.000-04:00

Stocks plunged after the Federal Reserve made it official – no change in rates and Operation Twist is a go. The Fed said it will shift $400 billion from short-term Treasuries into long-term Treasuries in an effort to boost lending and spur the economy. Aside from the Fed, investors remained on edge over the developing situation in debt-stricken Greece. The tech sector slipped also, while Oracle and Hewlett-Packard advanced after upbeat earnings and on media reports about possible shift in the board. Adobe added 1% after the co. reported a drop in profit, but issued a better-than-expected forecast. Implied volatility surged above the 30 level on massive trading.

Closed in the red ahead of Fed

2011-09-21T06:19:00.000-04:00

Stocks lost steam and erased most of the gains, as investors turned cautious amid the uncertainty surrounding Greece’s debt issues and ahead of the Fed’s interest rate decision. Tech sector edged higher despite slumping shares of Netflix and Xilinx. Apple moved up 0.4%, after trading up to a new all-time high of $422.86. After the bell Adobe and Oracle advanced after reporting better-than-expected quarterly results and issuing solid forecasts. Microsoft picked up 0.2% after raising its quarterly dividend, the co. also said it will continue buying back shares in its $40 bln repurchase program in which $12.2 billion in buy-back authority remains. Implied volatility inched lower on moderate volumes.

Managed to close with gains

2011-09-20T04:21:00.001-04:00

Stocks trimmed earlier losses Monday afternoon, amid hopes that Greece may avoid a default. But the uncertainty over the debt-laden nation’s future still ended the market’s 5-day winning streak. Also, President Obama unveiled a plan to cut the national debt by $3 trillion over the next decade, but plan includes tax increases, investors are skeptical that Washington will ever be able to pass anything. Technology stocks headed south, joining a broad market selloff. Applied Materials and Lam Research highlighted the retreat, falling sharply after Goldman Sachs downgraded the stocks for the chip-equipment tool makers. UBS upgraded Texas Instruments to buy from neutral, citing the chip company’s strong position in the analog and embedded chip market. Apple edged up 3% and hit a 52-week high. After-hours Standard & Poor’s said it has cut its unsolicited long- and short-term sovereign credit ratings on Italy by one notch to A/A-1 from A+/A-1+, with a negative outlook. Implied volatility inched higher on light trading volumes.

All eyes on the FOMC meeting

2011-09-19T02:44:00.004-04:00

Stocks climbed to best week since July as the group of finance ministers, including Timothy Geithner, was in talks about European debt crisis and comments from French and German leaders expressing confidence in Greece’s place in the euro-zone helped to drive the broader market higher. Tech stocks closed mostly in the green, meanwhile, losses by Research In Motion and Netflix dominated the sector’s attention. RIM fell almost 19%, following disappointing earnings report. Netflix extended losses, after the co. cut its U.S. subscriber estimates for the current quarter. This week investors will focus on the FOMC meeting as it spend two days mulling over what monetary policy levers to pull to give the U.S. economy a boost. Implied volatility inched lower on moderate trading volumes.

Surged on European aid plan

2011-09-16T05:21:00.000-04:00

Stocks closed higher as investors cheered The European Central Bank, the U.S. Federal Reserve and three other major central banks agreement to step in to boost dollar liquidity for banks in Europe. Also, initial claims for jobless benefits came in higher than expected and economic activity data worsened, showing weaker-than-expected figures and CPI rose at an annual rate of 3.8% in August, the highest annual increase since 2008. Yahoo led strong gains for the tech sector after a buyout report. Also, top gainers included eBay, Google, Oracle, Dell, Cisco and NetApp. In the evening trade Research In Motion tumbled after disappointing earnings, while Texas Instruments gained after the company announced a dividend hike. Implied volatility inched lower on huge trading volumes.

Rallied on hopes for Greece

2011-09-15T05:15:00.000-04:00

Stocks ended sharply higher following a choppy start, after investors were calmed by European leaders insisting that Greece would remain a eurozone member and would achieve its fiscal targets. Also, PPI was unchanged in August, which was in line with expectations, retail sales were flat in August, following a 0.3% rise the previous month. Tech sector extended its winning streak for the week to three straight sessions. Dell extended gains after the co. said late Tuesday that its board of directors authorized an additional $5 billion buy-back plan. Gains also came from Nvidia, Oracle, Apple and Micron. Cisco gave up a little as analysts were seen as optimistic about Cisco’s new, aggressive stance following a meeting with company officials on Tuesday. Implied volatility inched lower on moderate trading volumes.

Rose for the second session

2011-09-14T05:56:00.000-04:00

Stocks closed in positive territory to end a choppy trading day. After a rough start stocks followed world markets slightly higher as worries about a possible credit downgrade of French banks receded. Best Buy fell 6.5% after disappointing earnings. Tech stocks performed well with Cisco and Microsoft in the spotlight. Cisco expects its annual sales to rise 5% to 7% over the next three years and forecasted gross margins of 60% to 62% for the fiscal year ending in July 2012. Microsoft gave developers an early look at its Windows 8 operating system, which will emphasize its ease of use with mobile devices. Apple gained 1.23% after Morgan Stanley analyst said that with $76 billion in cash, Apple “is more likely than ever to return cash to shareholders” in either the form of a dividend payment or stock buyback. Among other tech stocks, gains came from IBM, Google, Intel and Dell. Also, in the evening trade Dell rose 2% after the co. said its board has authorized an additional $5 billion for stock repurchases. Implied volatility inched lower on modest trading volumes.

Closed with solid gains

2011-09-13T05:18:00.002-04:00

Stocks finished a choppy session higher, as investors pinned their hopes on a report that China is in talks with Italy to buy the cash-strapped country's debt. If China indeed comes to the rescue of debt-ridden Italy, it would be a welcome sign of improving stability in the ongoing European debt crisis. Tech stocks posted the best gains, boosted by a 50% surge in shares of Netlogic after Broadcom agreed to buy the semiconductor company for $3.7 billion. Intel was the best performer on the Dow, gaining almost 3%, while Micron and eBay were among the biggest gainers in the S&P 500 and Nasdaq. Implied volatility inched higher on modest trading volumes.

All eyes on inflation and Greece

2011-09-12T05:57:00.000-04:00

Markets dropped sharply Friday on rumors about a possible Greek default. Whether or not something happens in Greece will largely rule market sentiment as the market opens. Also, President Barack Obama’s jobs plan and the resignation of a European Central Bank Governing Council member weighed on the markets. Tech stocks fell after Texas Instruments’s warning of weakness in demand spooked the broader market. But TI moved up 1.1% as analysts continued to see the co. as being well-positioned in an uncertain market, particularly with its heightened focus on its analog chip business. Other chip makers were also in positive territory. Highlighting the tech retreat was VeriSign, which tumbled 14.4% after its Chief Financial Officer Brian Robins had resigned. Yahoo 0.3% on rumors that Yahoo’s independent directors have set up a “strategy and transactions” committee led by board member David Kenny. Implied volatility surged to the 35 level on moderate trading volumes. This week all eyes will be on Greece and batch of economic and corporate data, including inflation.

Stocks retreated after Bernanke’s speech

2011-09-09T04:20:00.002-04:00

Stocks fell after Bernanke made a speech reiterated previous statements that the central bank stands ready to use certain “tools” to help stimulate the economy. But he offered no indication as to which of those tools the Fed is, or is not, prepared to use. Also, jobless claims rose 2,000 to 414,000 in the week ending Sept. 2, up from the 409,000 claims filed the week before, and worse than the 400,000 claims expected. Technology stocks ended lower after Bernanke’s remarks. Cisco was one of the few notable tech gainers, rising 2.6%, after the rating upgrade. SanDisk rose 2.4% and Micron gained 3%. After-hours Texas Instruments gave up 1.2% as the co. cut its sales and earnings forecasts for the third quarter, citing “broadly lower demand across a wide range of products, markets and customers”. VeriSign tumbled 8.6% following the company’s announcement that finance chief Brian Robins is resigning. Implied volatility inched higher on modest volumes.

Stocks retreated after Bernanke’s speech

2011-09-09T04:20:00.001-04:00

Closed sharply higher

2011-09-08T05:02:00.003-04:00

Stocks rallied to end the day sharply higher. The gains came as concerns over Europe’s debt crisis eased and investors geared up for President Obama’s highly anticipated jobs speech Thursday evening. An unexpectedly upbeat forecast from Nvidia triggered a tech rally as chip stocks posted strong gains. Nvidia jumped 8.1% after the chip maker issued a stronger-than-anticipated fiscal-year 2013 outlook. Yahoo also highlighted the tech advance, as the stock jumped 5.4% after CEO Carol Bartz was fired by Yahoo’s board. Implied volatility inched lower on light trading volumes.

Little changed

2011-09-07T04:53:00.002-04:00

Stocks fell, extending last week’s losses, following a major selloff in Europe on Monday. The long-running debt crisis in Europe, which appears to be spreading from Greece to Italy and other nations, continued to weigh on U.S. markets. Tech stocks closed mostly lower, swept down in a broad market selloff. Also, J.P. Morgan analyst warned of “sustained weakness” in PC shipments and softening demand in the corporate technology market in Europe and the U.S. Dell rallied after losses early in the session to close up 0.1%. SanDisk and Micron posted solid gains after Bernstein Research analyst named the two memory chip makers as among the firms well positioned to gain from the growth of the solid state driver market. Implied volatility inched higher on modest trading volumes.