Narrow Session, but Weak Earnings Bode Poorly for Tomorrow
Posted on October 25, 2012 at 17:54 PM EDT
The stock market indices had a sloppy day and basically started the day differently. They opened with gaps to the upside, and then immediately sold off. It was a pretty sharp sell-off that took the indices to new lows. They bounced back midday, forming wedges, but then rolled over into the close. Only into the last 5 minutes did they bounce, with Apple Inc. (AAPL) bouncing off 605 to near 610. However, in after hours, Amazon Inc. (AMZN) and several other companies came out with poor earnings, and the market is down quite a bit. At this point, Amazon Inc. (AMZN) is down 20 points, so there’s a lot of pressure on the Nasdaq 100. We’ll see how it goes tomorrow, but for now it was a weak session in the morning, but with the early gap-ups they still managed to close positive on the session. Net on the day, the Dow closed up 26.34 at 13,103.68, about 64 points off the low and 61 points off the highs, so it closed mid range. The S&P 500 was up 4.22 at 1412.97, 7 points off the low and 9 points off the high, also mid range. The Nasdaq 100 was up 2.11 at 2657.66, 8 points off the low and 22 points off the high. Advance-declines were 3 to 2 positive on the New York Stock Exchange, and almost 14 to 10 positive on Nasdaq. Up/down volume was nearly 3 to 2 positive on New York, with total volume of 620 million shares. Nasdaq traded 1.8 billion and had about a 9 to 8 plurality. TheTechTrader.com board, as a result of today’s action, was mixed, but there were a lot of losers as well as gainers. Point-plus gainers included Cliffs Natural Resources Inc. (CLF), which got hammered on earnings, down 4.49 to 38.20. Amazon Inc. (AMZN) was down 5.57 to 222.92, Apple Inc. (AAPL) down 7.29 to 609.54, SolarWinds, Inc. (SWI) 2.45 to 49.40, and Silicon Motion Technology Corp. (SIMO) 1.19 to 13.46, but came way off its earlier low way under 12. Other gainers of note on our board today included Angie's List, Inc. (ANGI), up 2.47 to 11.56, or 27%, on 4.1 million shares. Overstock.com Inc. (OSTK) gained 2.56 to 13.50, or 23%, on nearly a million shares. Proto Labs, Inc. (PRLB) jumped 6.03 to 35.96, or 20%, on 1 million shares. LogMeIn, Inc. (LOGM) climbed 3.75 to 23.82, or 18 1/2%, on 1.4 million shares, and Tenneco Inc. (TEN) advanced 3.89 to 30.68, or 14 1/2%, on 3.1 million. Titan International Inc. (TWI) jumped 2.79 to 21.15, or 15%, on 2.5 million shares. 3D Systems Corp. (DDD) snapped back 4.93 to 40.85, or 14%, on 4.8 million shares. GrafTech International Ltd. (GTI) gained 1.40 to 11.01, or 14 1/2%, on 5.5 million shares. Libbey Inc. jumped 2.01 to 17.03, or13%. Brunswick Corporation (BC) had a big gap down in the morning, and worked its way up 2.39 to 23.63, or 11%, on 2.3 million shares. NXP Semiconductors NV (NXPI), on good earnings, popped 2.56 to 23.49, or 12%, on 6.1 million shares. In addition, Stewart Information Services Corporation (STC) jumped 1.51 to 21.78, Aegerion Pharmaceuticals, Inc. (AEGR) gained 1.63 to 22.11, PACCAR Inc. (PCAR) advanced 3.21 to 42.78, Stratasys Inc. (SSYS) popped 4.84 to 66.49, and Akamai Technologies, Inc. (AKAM) closed up 2.43 to 38.54. The Direxion Daily Gold Miners Bull 3X Shrs (NUGT) snapped back 1.26 to 15.38. Stepping back and reviewing the hourly chart patterns, the indices had big gaps up at the opening. They sold off all morning, stabilized midday, and then rallied back in the afternoon, but failed at resistance and rolled over, only to snapback in the last 5 minutes to end in the plus column. However, with several stocks coming out on earnings tonight, we may see volatility and/or lower prices tomorrow. Good Trading! Harry
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