Low volume day follows the trend

Index & Sector performance 11/22/13

The Market:

The market made solid gains trending higher all day to close over $1800 in the S&P 500.  If there was anything concerning about today’s rally, it was the volume which seemed very light but seeing a market move in the direction of the trend on low volume days is not uncommon.

There was not much on the Economic data front today besides some fed speak but Thursday the 21st was big.  Unemployment Claims came in better than expected posting 10K below (323K vs 333K) expectations while the previous week was adjusted slightly higher to 344K vs the 339K previously reported.  Headline PPI came in as expected while Core PPI was slightly better.  Flash Manufacturing PMI also beat with a 54.3 reading vs 52.6 consensus.  A low spot was the Philly Fed Manufacturing Index which posted a 6.5 vs 15.8 expectations.

Story Stocks:

Time Warner Cable (TWC) gained 9.98% on reports Charter Communications (CHTR) is in talks with banks to finance a takeover of TWC.

Yum! Brands (YUM) gained 4.51% after authorizing an additional share repurchase of $750M.  YUM also caught an upgrade to Buy with a $90 price target at Deutsche Bank.

ARIAD Pharmaceuticals (ARIA) gained 35.48% after the European drug regulator came out with what was perceived as a less severe stance for their leukemia drug Iclusig than the FDA.

Ross Stores (ROST) lost 5.72% after EPS met expectations but guidance fell short of analyst expectations.

Analyst Comments:

Upgrades 11/22/13

Downgrades 11/22/13

Initiations 11/22/13

Price Target Changes 11/22/13