Daily Wrap

DJIA +65.36 (+0.44%) to 15,112.19;S&P 500 +8.68 (+0.54%) to 1,628.93;NASDAQ +31.24 (+0.92%) to 2,959.50

Monday’s action start hot with a gap higher and a rally in the markets which lasted until roughly noon when we started to dip lower and then the decline started gaining some steam into late day trading.  The highs of the day in the S&P 500 correlated with a first touch of the 50 day SMA which would be expected to be resistance.  Today’s high now should become a key level to watch and if taken out the bulls may be back in control.

Merger Monday was in affect but started with an interesting twist as Onyx Pharmaceuticals (ONXX) became the stock of the day by NOT being taken over.  The company disclosed that they received a $120 all cash offer from Amgen (AMGN) and turned the offer down because they felt it was too low.  The company also reported that they have authorized their adviser to contact others who might be interest in purchasing the company.  ONXX closed up over 50% for the day.

In other merger news, Steinway Musical (LVB), gained 15.94%on the day after agreeing to be acquired by Kohlberg & Company.  The deal valued the company at $438M.

Apple (AAPL) has not had many days in the sun lately but today was one after receiving an upgrade to Strong Buy at Raymond James.  AAPL closed up over 3% on the news and looks like it is trying to set a double bottom down at these levels.  In my opinion, traders can use intraday pullbacks to take a long trade again the recent $388.87 lows.

The following noteworthy companies are scheduled to report earnings before tomorrow’s open: STZ, ZEP, AYI

In analyst notes today, we will make it the Raymond James day after they upgraded Apple (AAPL), Intuit (INTU) PAREXEL (PRXL) and Covance (CVD) all to Strong Buy.  Some of these and other upgrades and downgrades for the day can be found each morning when I post my 9 @ 9 in the Upgrades/Downgrades section.