New Year starts with a thud

Index & Sector performance 01/02/14

The Market:

The first trading day of the year started in the opposite direction of 2013’s trend with the S&P 500 closing down near 17 points and essentially taking back much of the holiday drift higher that was seen.

In economic data Unemployment claims came in worse than expected posting 339K vs. 334K expected.  Last week’s claims were also adjusted slightly higher to 341K from 338K.  The remaining released data either met or exceeded expectations including Manufacturing PMI, Construction Spending and ISM.

Economic Data week of 12/30/13

In the News:

Apple (AAPL) closed 1.41% (lower) amidst differing analyst opinions.  Wells Fargo downgraded the company to Market Perform from Outperform with a price target range of $538-581.  On the other side, Cantor Fitzgerald made AAPL its Top Large Cap Pick for 2014 while maintaining a Buy and $777 price target.

Plug Power (PLUG) closed over 50% higher after reaching order targets for Q4 2013.  CEO Andy Marsh is also optimistic the momentum will continue into Q1 2014.

Omnimedia (MSO) gained 8.81% after reaching an agreement over the breach of contract dispute with Macy’s (M).  While the dispute between MSO and M is finished, the claim against J.C. Penney (JCP) remains open.

The following noteworthy companies are scheduled to report earnings before tomorrow’s open: LNN

Analyst Comments:

Upgrades 01/02/14

Downgrades 01/02/14

Initiations 01/02/14

Price Target Changes 01/02/14

The Game Plan:

While the first day of trading started with a thud, the overall trend remains higher and will not be lost easily.  Before the Bulls throw in the towel we need to see $1815, $1800 and the 50 Day SMA lost which comes in today at $1790.  If those levels are lost then we could start to see the S&P 500 work toward its 200 day SMA which it has avoided since November, 2012 and currently comes in at $1680.