No Summers….Yee Haw!
Index & Sector performance 9/16/13
The Market:
After Larry Summers took himself off the Fed Chair block, the markets baked in expectations of Janet Yellen who many feel will be more accommodating than Summer may have been. The possibility of more stimulus from the fed or at least the likelihood that stimulus would persist was enough to send S&P 500 futures gaping higher Sunday evening and showing strength early in the trading session but the open marked the highs and the S&P 500 lost ground the remainder of the day closing 7 points off the highs.
Economic data was light today but also ignored due to the other news. Empire State Man. Index was far worse than expected and Industrial Production was light. Tomorrow Treasury Sec Lew speaks before the open at 8:15 am EST and then we get CPI/Core CPI at 8:30 am as well as the NAHB Housing Market Index at 10 am.
Story Stocks:
Boise (BZ) agreed to be acquired by Packaging Corporation of America (PKG). The agreed upon purchase price of $12.55 represented a nearly 26% premium from Friday’s close and BZ traded right up to and slightly even over the purchase price throughout the trading day. Not the norm, PKG also traded much higher on the news closing up X%.
Apple (AAPL) shareholders felt some pain today as the stock closed down X% in what was a friendly tape. The move seemed to stem from lingering disappointment over the recent 5C and 5S phone launch as well as some speculation AAPL was being too quiet about pre-orders possibly signaling lack luster consumer interest.
The following noteworthy companies are scheduled to report earnings before tomorrow’s open: COTY, FDS, SUTR
Analyst Comments:
Upgrades 9/16/13
Downgrades 9/16/13
Initiations 09/16/13
Price Target Changes 09/16/13
The Game Plan:
The news of the day helped the S&P gap with great authority but there was not much left in the tank after the open and the market moved off the highs set in very early trading. The bulls remain in control and the interesting similarity between the current technical set-up and that from back on July 5th continues to play out where we regained the 50 day and saw the MACD cross.
For long traders, 1680 and 1660 need to hold or else there could be a more prolonged pullback. Watch the MACD trend line and see if it acts as resistance and if repels or just pauses setting up a next leg.
