Daily Wrap
DJIA +18.89 (+0.14%) to 13,507.32; S&P 500 -1.37 (-0.09%) to 1,470.68; NASDAQ -8.14 (-0.26%) to 3,117.50
Technically it was a mixed day but who really cares about the Dow? Today started and finished lower on the S&P but otherwise was very tight ranged spanning less than 6 points from low to high. Ben Bernanke spoke just after the close but so far it seems to not have any effect as the futures are up less than 1 point after the close as I am typing.
Today’s major stock of the day and has often been my stock of the day is Apple Computers (AAPL). AAPL moved lower on rumors/speculation that AAPL decreased component orders for the iPhone 5 due to lack of demand. This didn’t just affect AAPL and also sent the component manufacturers lower including Cirrus Logic (CRUS), closing down over 9% and Qualcomm (QCOM) closing down about 1%. Later in the day both UBS and Bank of America/Merrill came out stating that was “old news” and reiterated their Bullish stance with $700 and $720 price targets respectively. AAPL reports earnings on 1/23 and I think you probably want to own into that report. There is still over a week until then so you can give AAPL some room to prove something in the meantime but I, who generally never plays earnings, might look to set a small long (option) position into the report.
Another stock in the news but having a better day than AAPL was Dell (DELL) which spiked higher on reports that the company is exploring a bid to go private. I did not see many analyst comments but Susquehanna came out and stated they believe DELL could be worth 16-17 in an LBO but also noted that $16 would be a big transaction. I will be watching to see the next few days of trading in DELL, this idea looks like it could have legs especially if DELL can flag here before a move higher.
There were a fair amount of analysts comments and Upgrades/Downgrades today including a few on Infosys (INFY) which reported great earnings and made its large move yesterday but Barclays, JP Morgan and UBS got around to upgrading the name today. UBS was the only to go to a Buy and saddled the name with a $61 price target.
Also plucked from the analyst pile was a name that was in the news a few days back on a rumor and even before that ona downgrade at William Blair, Fusion-io (FIO). Today FIO received an upgrade to Overweight at JP Morgan with a $30 price target. This represents a near 50% increase even from today’s closing price. JP Morgan sited an attractive risk-reward profile and expectations for revenue growth to accelerate in 2013. There truly was a great list of common stock names and big firms making changes so please stop in the Upgrades/Downgrades section to get today’s changes and also review the date sorted archive.
Another Hot Stock lately has been Research in Motion (RIMM) and today was no exception. RIMM closed nearly 10% higher today but if your looking for a solid news story or event to attach to the move, good luck. Just seems to be more of the trading that has been going on in the name since the bottom in late September.
As always you can visit the Event’s Calendar for the release of economic data, scheduled meetings and other news that could move the market.
According to Briefing.com, the following noteworthy companies are scheduled to report earnings before tomorrow’s open: CBSH, FRX, IRWD, LEN, MBWM
Today was a tight trading day and ultimately I would like to see a little more of a dip in the short term before we then move higher but the markets do not always give you what you want. Otherwise the recent action continues to be bullish and while we may be at or near 5 year highs on the S&P 500, the market still acts like it wants more.
