Week in Review

DJIA +90.54 (+0.63%) to 14,512.03; S&P 500 +11.09 (+0.72%) to 1,556.89; NASDAQ +22.40 (+0.70%) to 3,245.00

As some pessimism laid way to optimism regarding the Cyprus situation and at least got our of the market’s way to press higher near 1% for the day.  What was also positive to see was the line-up with the S&P 500 and Nasdaq leading instead of the Dow (broader based rally).

The stock of the day was no doubt Nike (NKE) in my opinion.  Thursday evening after the close NKE posted Q3 EPS of 73c vs estimates of 67c on revenue that met expectations of $6.2B.  The company also announced that gross margins improved 30 basis points and for 2012 the company sees EPS growth in the mid-teens percentage wise.  NKE saw a few analysts raise their price targets including UBS ($63), Citigroup ($65) and DA Davidson ($60).  Looking at the chart I could see NKE continue to climb toward $65 but I do believe the risk reward on the name, here but especially above $60, starts to really flip and it is risky allocating new capital.  NKE might be a great name to look at especially into 2014 if they will be continuing to see increasing revenues and EPS but ideally after a pullback to provide more upside opportunity.

Also moving higher today on positive earnings and some analyst price target raises was Micron (MU) closing over 30% higher.  Targets increased from $12-15 with Jefferies being the top at $15.  MU looks like it could be possibly running out of steam on that gap and much like NKE, while it could press higher it seems waiting for a pullback is best.  Moving the opposite direct on EPS and analyst downgrades was Tibco (TIBX).  While TIBS closed down over 9%, it did gain back much of the initial drop in the morning.  I would not be jumping in right away but if TIBX can build off Friday’s action then this could have been a potential final wash out, otherwise the name has a gap around $16 which could target.

BlackBerry (BBRY) was the big loser of the day dropping nearly 8% as their new Z10 phone launched in AT&T stores and from many accounts was met with a “lukewarm” reception by consumers.  BBRY  still looks like it could be building a pattern begging for higher prices and as I believe I noted ina  past recap, BBRY is best served building more of a pattern of support to move off from into any further rallys.  I will still consider the chart constructive as long as we stay above the $12.55 recent pivot support.  Below there and the 200 day could come into play.

On the most ups today was Halozyme (HALO) which received a positive opinion for HyQvia from the European Medicine Agency.  This news vaulted HALO up nearly 31% for the day closing at $6.90.  The 2012 high for HALO was $13.50 so there could be room left to run if the company can build on this positive news.  Obviously this is a higher risk higher reward name.

Week in Review:

Monday  started down with concerns from a bank failure in Cyprus.  After being down roughly 20 points in the S&P 500 futures in very early/overnight trading the market finally firmed up and essentially spent the remainder of the day rallying and almost reaching even until a 2:30 pm EST sell of finally closed down $8.60.  Charter Communications (CHTR) closed nearly 9% higher at a new 52 week highs as The Wall Street Journal announced Liberty Media (LMCA) is close to a deal to buy 25% of the cable TV operator for about $2.5B.  On the downside, Boeing (BA) lost nearly 1.5% after news that rival Airbus received an order from a previous BA customer, Lion Air, for $24B.

Tuesday there was continued trepidation and negativity stemming from the Cyprus debacle but again the markets were ale to rally off lows (which coincided with the 20 day SMA on the SPY).  lululemon (LULU) gaped down after reporting lower Q1 revenue and same-store-sales guidance as a result to a recall of its Black luon pants.  Walgreen (WAG) and AmerisourceBergen (ABC) both went higher on news of a long-term pharmaceutical distribution agreement.  WAG and Cardinal Health (CAH) also announced the end of their agreement and CAH provided 2014 guidance which came in below street estimates.

Wednesday was a snap back after two straight losing days where the market showed continued strength and buyers on each dip.  Interestingly the markets gaped on the open with Bernanke and the Fed due to announce at 2pm EST and after the gap we essentially drifted to and through the announcement and Q&A.  FedEx (FDX) moved nearly 7% lower after reporting 3rd quarter EPS which missed street expectations and more importantly they lowered guidance for the remainder of the year.  Also interestingly enough FDX provided an outlook on U.S. GDP of 2% growth for the 2013 which is below the Fed’s expectations.  Moving on analyst comments, BlackBerry (BBRY) caught an upgrade at Morgan Stanley (MS) to Overweight and the price target was raised to $22 from $10.  Zynga (ZNGA) went the opposite direction as BBRY and closed down 3.75% after being downgraded to Neutral from Buy at Bank of America/Merrill.  There was a takeover in the news as well as Obagi Medical Products (OMPI) closed up over 28% after agreeing to be acquired by Valeant Pharmaceuticals (VRX) for $19.75 per share in cash.

Europe ruled the day Thursday and after a small initial gap lower and midday rally, the markets then lost ground the remainder of the day sending it back down near Tuesday’s lows.  In economic data news, the U.S. jobless claims slightly rose but were less than expectations.  Oracle (ORCL) closed down nearly 10% after missing EPS estimates blaming a strong dollar and their sales team as reasons for the lack luster results.  Moving higher was SuperValu (SVU) which sold five retail names in their portfolio including Albertsons for $3.3B.  FBR Capital capital was active downgrading two large tech names, Cisco (CSCO) and Juniper Networks (JNPR) which sent both names lower for the day.

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.  Also in that section are Dividends and Splits.

Major averages 5 day results:

Dow Jones Industrial:

S&P 500:

Nasdaq:

This coming week will be a shortened trading week with the markets being closed Friday in observance of Good Friday.  My stance has been that we will likely have an upward and at least neutral bias into the holiday but then if we can press higher into Friday, that we then might see a respite in the markets.