March 19, 2024

Slow grind higher continues

Index & Sector performance 12/9/13

The Market:

Another slow grinding day with a bias higher.  It is yet to be seen if this is a consolidation for a next leg higher or exhaustion with a leg lower to come.  To catch the most amount of people off guard the market could look to pop higher first to finish and then start a strong quick decline.

There was no economic data today but there was Fed speak from FOMC member Bullard.  Bullard was a QE3 supporter and noted his stance that any Fed action is data dependent.  The increase in jobs numbers helps the tapering case yet inflation has remained low.  When tapering does begin, Bullard would be in favor of small incremental changes to not shock the market.  Tomorrow we see NFIB Small Business Index and Wholesale Inventories.

Story Stocks:

While closing well off the highs of the day, Sysco (SYY) gained 9.41% after announcing that they would purchase privately held US Foods for roughly $8.2B.  Wall Street clearly like’s the decision to roll-up this competitor.

McDonald’s (MCD) slipped 1.16% on disappointing same store sales which saw declines in the U.S., Asia, Middle East and Africa with only Europe being a bright spot.

In merger news, Given Imaging (GIVN) closed 27.4% higher after agreeing to be acquired by Covidien (COV) for $30 per share.

Edwards Lifesciences (EW) continued its losing streak of late closing down 5.67% after announcing 2014 EPS estimates well below consensus expectations.  EW has had a rough 2013 after peaking near $110/per share in October 2012 now residing at $62.53.  EW may be a name to watch after tax loss selling in December and could be a snap back candidate for 2014.

The following noteworthy companies are scheduled to report earnings before tomorrow’s open: TOL, AZO, PTRY, LDOS, HDS

Analyst Comments:

Upgrades 12/9/13

Downgrades 12/9/13

Initiations 12/9/13

Price Target Change 12/9/13

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