Futures -75bps this morning as markets weaken following the recent 13-month high. Jobless Claims were in-line with expectations, at 505k. Continuing Claims were also in-line, at 5.611M vs. 5.598M expected. The USD is higher, pressuring oil, gold, copper, and other commodities and commodity producers. Given the 64% surge in the S&P500 following the 12-year March low, investors are seeking more confirmation from economic data regarding the strength of the underlying economy. In corporate news, BofAMLCO lowers the semiconductor sector, SHLD is higher on earnings, LTD is higher on earnings, CL is higher on speculation of a takeout from UK’s RB/ LN, NTAP is higher on earnings, and JPM is lower on news it will buy the rest of Casenove it does not already own, and BX is buying Bird’s Eye Foods. In
, the Health Care Bill continues to crawl through, as a vote is considered to begin debating the bill in the Senate. LEI reading is due at 10am, along with the Philly Fed data. Treasury Secretary Geithner to speak before Congress at 10am. Washington
Technically speaking, futures continue to dance around the key psychological S&P 1100 level… Options expiry tomorrow. Volumes – and conviction – remain light. As a result, it does not take much – particularly when it comes to currency moves, i.e. the dollar – to move markets. Anecdotal evidence continues to indicate funds are reducing risk and calling it a year. Others, of course, scramble to chase and “make the year.” Plenty of news in the retail space. Here’s a solid summary from Barclay’s:
Overall these results were pretty good ... 8 companies beat eps (PVH, WSM, PETM, LTD, SHLD, SSI, BKE, DKS) while PLCE was just in-line. 3 companies raised 4Q guidance (PVH, WSM, SSI) while 2 more companies guided 4Q inline (LTD, PETM) and DKS guided below consensus. Overall, the focus should be on a pending squeeze in SHLD and WSM,the great PCH number, what happened with DKS 4Q guidance and PLCE's inventories, while LTD and PETM are kinda in-line(ish) non-events.
BofAMLCO ups CAN, IPCC, NATL, SIGI.
ups XL. MSCO ups GSCI. OPCO ups MNTA, SOLF. RBCM ups AVB, MAA. WELA ups SMA. BofAMLCO cuts AOC, ARMH, ASML, INTC, LSI, MCHP, MMC, MRVL, MXIM, NSM, PGR, POWI, TXN. CITI cuts HOTT. BERN
Brightpoint PreMarket (yest close/premkt/% change/volume):
S&P 500 PreMarket (last/% change prior close/volume):
PROGRESSIVE CORP 16.10 -5.57% 300
SEARS HOLDINGS 78.88 +4.1 % 15593
NATL SEMICONDUCT 13.80 -4.03% 1900
NETAPP INC 30.75 +3.81% 85986
LSI CORP 5.49 -3.68% 13892
MARSH & MCLENNAN 22.55 -3.63% 200
INTEL CORP 19.40 -3.58% 954511
WESTERN UNION 18.98 -3.51% 322
Today’s Trivia: We’ve all heard of “horsepower,” but how does “donkeypower” compare?
Yesterday's Answer: There are one hundred zeros in a googol.
Best Quotes: “The Dollar is firmer this morning. Should we start to worry about a correction? What impact would that have on the tape into year end? Volumes remain light. At 8:30, we’ll get initial jobless claims for the week ending November 14. At 10am, leading indicators are released and are expected to advance 0.4% MoM in October – the sixth consecutive monthly increase. The Philly Fed manufacturing index is released as well. On the policy front, we’ll hear from Treasury Secretary Geithner at 10 am before the Congressional Joint Economic Committee. We are already trading below yesterdays low of 1100, 1091 is the weeks low. 1112 is the years high. Do you buy this dip? Tough call.” --trader note