Stocks Edge Higher On Latest Economic & Earnings Data

Byinfo@50park.com

Thursday, April 15, 2010
Market Commentary:

Stocks ended higher on Thursday as investors digested Wednesday’s large move and the latest round of earnings and economic data. Volume totals on the NYSE and on the Nasdaq exchange were reported slightly lower compared to Wednesday’s totals. Advancers led decliners by a 4-to-3 ratio on the Nasdaq exchange and were about even on the NYSE. New 52-week highs easily trumped new lows on both exchanges. There were 89 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher than the 86 issues that appeared on the prior session. A healthy crop of new leaders making new highs bodes well for any market rally. Regular readers know we have repeatedly noted in this commentary –“the recent expansion in leadership has been a welcome improvement.”

Strong Mfg Data Offsets Weaker Jobs Data:

Before Thursday’s open, the Labor Department said weekly jobless claims unexpectedly climbed to 484,000, which is a two month high. The four-week moving average of initial claims, which smoothes out the weekly data, rose to 457,75 from 450,250. Elsewhere, the Federal Reserve said factory production rose +0.9% after rising +0.2% in February which topped analyst estimates. Oversea’s China said its economy surged nearly +12% last quarter which topped the Street’s forecast.

Earnings Data Continues To Top Estimates:

At this point, earnings have been positive, evidenced by the slew of stronger than expected results from several high profiile companies. After Thursday’s close, tech giant, Google Inc. (GOOG +1.07%) released another robust quarterly report but traded slightly lower in the after market as investors digest the numbers. Google’s Q1 earnings rose +31% vs the same period in 2009 while sales jumped +23%. Medical giant, Intuitive Surgical, Inc. (ISRG +1.06%) also topped estimates when they reported another outstanding quarter. The company said earnings surged +194% vs. Q1 2009 while sales jumped a very impressive +74%.

Market Action- Confirmed Rally:

The benchmark S&P 500 Index currently has 5 distribution days while the Nasdaq Composite and Dow Jones Industrial Average have 4 since the March 1, 2010 follow-though-day (FTD). These distribution days have not been damaging which is a welcomed sign. Trade accordingly.

Similar Posts

  • Day 1 Of New Rally Attempt; Stocks Positively Reverse!

    Byinfo@50park.com

    Market Outlook- In A Correction:
    The major U.S. averages are back in a “correction” as they continue to flirt and in some cases hit fresh 2011 lows. Allow us to be clear: If all the major averages break below their 2011 lows, then we will likely see another leg down. Please, trade accordingly! Several high ranked leaders violated their respective 50 DMA lines in late September which bodes poorly for the bulls and suggests the bears are getting stronger. The latest follow-through day (FTD) which began on August 23, 2011 has officially ended which means we will begin “counting” days before a new rally can be confirmed. In addition, it is important to note that the bears remain in control of this market until the major averages trade above their longer and shorter term moving averages (50 & 200 DMA lines). Our longstanding clients/readers know, we like to filter out the noise and focus on what matters most: market action. . If you are looking for specific help navigating this market, please contact us for more information.
    Save Over 50%!
    Limited-Time Offer!
    www.FindLeadingStocks.com
    Coming Up This Week:
    WEDNESDAY: Weekly mortgage apps, Challenger job-cut report, ADP employment report, IS non-mfg index, oil inventories; Earnings from Costco, Monsanto, Marriott
    THURSDAY: BoE announcement, ECB announcement, jobless claims, chain-store sales; Earnings from Constellation Brands
    FRIDAY: Non-farm payroll, wholesale trade, consumer credit, Sprint’s 4G plans unveiled
    Source: CNBC.com

  • Strong Start to 2011!

    Byinfo@50park.com

    It is encouraging to see the bulls show up in November and defend the 50 DMA lines for the major averages. The market remains in a confirmed rally until those levels are breached. The tech-heavy Nasdaq composite and small-cap Russell 2000 indexes continue to lead evidenced by their shallow correction and strong recovery. However, it is important to note that stocks are a bit extended here and a pullback of some sort (back to the 50 DMA lines) would do wonders to restore the health of this bull market. Put simply, stocks are strong. Trade accordingly. If you are looking for specific high ranked ideas, please contact us for more information.

  • Stocks Jump As Dollar Falls

    Byinfo@50park.com

    It is encouraging to see the bulls show up this week and defend the 50 DMA lines for the major averages. Wednesday marked Day 1 of a new rally attempt for the Dow Jones Industrial Average and the benchmark S&P 500 which means the earliest a possible FTD could emerge for those indices is Monday. Meanwhile, the tech-heavy Nasdaq composite and small-cap Russell 2000 indexes marked Day 10 of their respective rally attempts which means the window remains open for either of those two indices to score a proper FTD. Trade accordingly.

  • Stocks Fall As Economy Weakens

    Byinfo@50park.com

    The technical action in the major averages continues to weaken. Currently, resistance for the Dow Jones Industrial Average and the benchmark S&P 500 index is their respective 200 DMA lines, while the Nasdaq Composite faces resistance at its 50 DMA line. It is also disconcerting to see the action in several leading stocks remain questionable as evidenced by the dearth of high-ranked leaders breaking out of sound bases. Thursday’s action wiped out the gains enjoyed earlier in the week for the major averages which emphasizes the importance of remaining cautious until the rally is back in a confirmed uptrend. Put simply, we can expect this sideways/choppy action to continue until the market breaks out above resistance or below support (recent chart lows). The first scenario will have bullish ramifications while the second will be clearly bearish. Trade accordingly.

  • Day 10: Stocks Rally On This Shortened Holiday Week

    Byinfo@50park.com

    Friday, February 19, 2010 Market Commentary- Week In Review: Stocks rallied on this shortened holiday week as investors digested a slew of economic and earnings news. On Tuesday, stocks rallied after the NY Fed released its Empire State Mfg index which topped the Street’s estimates. This was the fastest reading in four years and the first…

  • Flight To Safety; Stocks & Commodities Plunge As Dollar Soars!

    Byinfo@50park.com

    The market is currently in a correction which, according to historical precedent, suggests 3 out of 4 stocks will follow the market lower until a new follow-through day emerges. That said, taking the appropriate action on a case-by-case basis with your stocks prompts investors to raise cash when any holdings start getting in trouble. It is also important to note that the major averages have experienced multiple “corrections” since the March 2009 lows and each one has been mild at best (less than a -10% decline from the recent high). Therefore, it will be very interesting to see how low this correction goes before the bulls show up and defend support. Additionally, it is important to note that the market can go much lower (or higher) than anyone thinks; so it is of the utmost importance to filter out the “noise” and carefully analyze price and volume action of the major average for the best read on the health of the market. It will be very interesting to see how the market reacts to Friday’s nonfarm payrolls report slated to be released 8:30am EST.

Leave a Reply

Your email address will not be published. Required fields are marked *