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[BRIEFING.COM] The major U.S. indices remain mixed at this time as the Nasdaq outperforms. A look inside the Dow Jones Industrial Average shows Apple (AAPL 115.46, -3.62), Chevron (CVX 89.20, -2.04), and Exxon Mobil (XOM 81.79, -1.19) are underperforming. Chevron and Exxon Mobil are trading lower as the energy sector lags with natural gas and crude oil declining 10.1% and 1%, respectively. Apple shares are active and underperforming ahead of tomorrow afternoon's Conversely, Microsoft (MSFT 53.87, +1.00) is the best-performing Dow component, adding to Friday's earnings fueled rally after opening its first flagship store on Fifth Avenue in New York today. Despite today's small decline, the DJIA is still up 8.3% this month. 12:50 pm: [BRIEFING.COM] The major averages are little changed at midday after spending the first half of the trading day inside narrow ranges. The S&P 500 is lower by 0.1% while the Nasdaq Composite (+0.2%) trades a bit ahead. The benchmark index has meandered in the red amid losses in eight of ten sectors with energy (-1.8%) trading well behind its peers. The cyclical sector has been pressured by a 0.9% decline in crude oil, which hovers near $44.17/bbl at this juncture. Similar to energy, four of the remaining five cyclical groups trade in the red with top-weighted technology (-0.3%) and financials (-0.4%) trailing the broader market. To be fair, today's underperformance in the tech sector comes after the top-weighted group surged 3.1% on Friday. Accordingly, today's weakness has been broad-based with the likes of Apple (AAPL 115.60, -3.48) and Cisco Systems (CSCO 28.90, -0.45) down 2.9% and 1.5%, respectively, while the PHLX Semiconductor Index has surrendered 1.8%. That being said, the relative weakness in the tech sector has been offset by a rebound in health care (+0.7%) with biotechnology contributing to the strength in the countercyclical sector. The iShares Nasdaq Biotechnology ETF (IBB 319.88, +3.60) is currently higher by 1.1%, helping the Nasdaq stay above its flat line. Broadly speaking, corporate news has been limited today, but it is worth noting that IntercontinentalExchange (ICE 244.21, -4.59) has agreed to acquire Interactive Data Corporation for $5.20 billion. Treasuries hover near their session highs with the 10-yr yield down three basis points at 2.06%. Today's economic data was limited to the New Home Sales report for September, which hit an annualized rate of 468,000. This was down from the revised August rate of 529,000 (from 552,000), and worse than the rate of 550,000 that had been broadly expected by the Briefing.com consensus. The September report was a bit surprising, considering the latest homebuilder surveys have shown strong improvement in current and expected sales growth. The September drop in sales brought inventories back into alignment with sales trends. 12:25 pm: [BRIEFING.COM] Equity indices have ticked from their recent levels with the S&P 500 (-0.2%) trading within four points of its session low. The top-weighted technology sector (-0.5%) has struggled since the start after enjoying a big surge on Friday. Today, however, the sector has suffered from losses among most large cap components. For instance, Apple (AAPL 115.64, -3.44) trades down 2.9% while Cisco Systems (CSCO 28.92, -0.43) and Qualcomm (QCOM 58.98, -1.75) hold respective losses of 1.5% and 2.9%. Similarly, high-beta chipmakers have underperformed since morning action with the PHLX Semiconductor Index trading lower by 1.8%. 11:55 am: [BRIEFING.COM] Not much change in the market as the key indices continue hovering near their recent levels with the S&P 500 trading lower by 0.3%. Despite today's modest downtick, the benchmark index remains higher by 7.8% with just four more October sessions remaining. Of course, the current standing could change significantly considering investors will receive a heavy batch of earnings this week while Wednesday afternoon will feature the latest policy statement from the Federal Reserve. Although the market does not expect the Fed to raise rates at the upcoming meeting, the forthcoming policy statement will be scrutinized closely with participants looking for clues about a potential rate hike taking place in December. Treasuries have maintained narrow ranges through the month with the 10-yr yield trading where it ended September (2.06%). 11:25 am: [BRIEFING.COM] The Nasdaq Composite (+0.1%) continues holding a modest gain while the S&P 500 (-0.3%) remains in the middle of its trading range. As mentioned earlier, the S&P 500 has climbed off its low thanks to a boost from the health care sector (+0.6%); however, most other groups trade in the red with heavily-weighted technology (-0.5%) and financials (-0.7%) showing relative weakness while the energy sector (-1.6%) remains behind its peers due to a 0.9% decline in crude oil, which trades at $44.20/bbl. Elsewhere, Treasuries have ticked down from their highs, but they continue holding gains with the 10-yr yield down three basis points at 2.06%. 10:55 am: [BRIEFING.COM] The major averages have climbed off their opening lows with the S&P 500 narrowing its loss to 0.2%. Seven sectors continue trading in the red, but relative strength in the health care space (+1.1%) has helped the market erase a large portion of its early loss. Biotechnology has contributed to the strength, evidenced by a 1.7% spike in the iShares Nasdaq Biotechnology ETF (IBB 321.68, +5.40). On a related note, biotechnology has helped the Nasdaq Composite (+0.2%) climb out of the red while the technology sector (-0.4%) continues showing relative weakness with its largest component-Apple (AAPL 116.02, -3.06)-trading lower by 2.6%. 10:35 am: [BRIEFING.COM] - The dollar saw moderate losses overnight, before rallying modestly ralling back toward the flat-line on an interplay of mixed global economic sentiment
- Drivers of the index included moves by both Euro and Yen: Euro on positive business climate/expectation readings out of Germany, and the Yen on sentiment ahead of Friday's BOJ meeting
- In recent trade, the dollar has pulled back to just above its LoD, now at -0.3% to 96.89
- Crude trended slightly in the green over the weekend, but saw a steady sell-off in early trade to below the $44/level
- Trading in WTI so far this morning has been highlighted by the release of a Goldman Sachs note, calling a sharp dip in prices (on fore-casted increases in inventory builds)
- December crude is still holding those morning losses, moderately above its LoD at -0.7% to $44.28/barrel
- Natural Gas is getting crushed, on continued concern about over-supply conditions and warmer-than-average near-term weather conditions, now at -4% to 2.39
- Gold and silver are positive for the session, on the dollar's weakness and sentiment ahead of this week's meeting (no rate-hike is widely expected)
- Gold is +0.5% to $1168/oz and silver is +0.6% to $15.92/oz
- Copper is still seeing positive momentum this session, at least partially from last week's China stimulus measures, now at +0.2% to $2.36/lb
10:00 am: [BRIEFING.COM] The S&P 500 has widened its loss to 0.3% with the energy sector (-1.3%) remaining at the bottom of the leaderboard. New home sales in September hit an annualized rate of 468,000, which was down from the revised August rate of 529,000 (from 552,000), and worse than the rate of 550,000 that had been broadly expected by the Briefing.com consensus. 9:35 am: [BRIEFING.COM] The major averages have dipped in the early going with the S&P 500 trading lower by 0.2%. Seven sectors sport opening losses with energy (-0.6%), health care (-0.4%), and technology (-0.3%) pacing the move lower while consumer discretionary (+0.1%), industrials (+0.2%), and materials (+0.1%) hover just above their flat lines. The energy sector has slipped to the bottom of the leaderboard amid a pullback in crude oil. To that point, WTI crude has surrendered 1.0%, sliding to $44.18/bbl. Elsewhere, Treasuries have ticked to new highs with the 10-yr yield down three basis points at 2.06%. 9:09 am: [BRIEFING.COM] S&P futures vs fair value: -2.20. Nasdaq futures vs fair value: -0.70. The stock market is on track for a modestly lower open with S&P 500 futures trading two points below fair value after spending the night in a tight range. Overall, the pre-market action has been very quiet with participants responding to just a handful of quarterly reports. Most notably, LendingTree (TREE 116.59, +18.59) has surged 19.0% in pre-market in reaction to better than expected earnings and upbeat guidance. Unlike stocks, Treasuries have inched higher, pushing the 10-yr yield down three basis points to 2.06%. Today's economic data will be limited to the 10:00 ET release of the September New Home Sales report (Briefing.com consensus 550K). 8:55 am: [BRIEFING.COM] S&P futures vs fair value: -2.60. Nasdaq futures vs fair value: -2.00. The S&P 500 futures trade three points below fair value. Markets in the Asia-Pacific region started the new week on a somewhat mixed note. Profit-taking efforts kicked in for some markets while other markets saw only modest gains after some big moves last week. Chinese officials began their fifth plenum planning meetings. Market participants are anxious to hear if officials temper China's GDP growth target. In the interim, the Shanghai Composite logged a 0.5% gain to begin the week, drawing a measure of support from the PBOC easing measures announced following the close of trading on Friday. - In economic data:
- Singapore's September Industrial Production +0.5% month-over-month (expected 1.0%; prior -3.7%); -4.8% year-over-year (consensus -4.6%; last -7.1%)
------ - Japan's Nikkei increased 0.7% after being up 1.4% earlier in the session. Gains in the technology (+1.3%), health care (+1.1%), and materials (+0.8%) sectors helped pace the advance. Panasonic (+6.1%), Hitachi (+6.1%), and Minebea (+5.1%) were the top-performing issues while Nippon Yusen (-3.3%), Haseko (-2.9%), and Yokogawa Electric Corp (-2.4%) were the worst-performing issues. Out of the 225 index members, 169 ended higher, 46 finished lower, and 10 were unchanged.
- Hong Kong's Hang Seng declined 0.2%, giving back all of a 1.2% opening gain. There wasn't a specific news catalyst for the turnaround, which was viewed as a general profit-taking effort. China Resources Power Holdings (-4.8%), BOC Hong Kong Holdings (-2.5%), and PetroChina (-2.1%) paced the losers. Sands China (+2.5%), Belle International holdings (+2.3%), and China Resources Land (+2.1%) topped the list of winners. Out of the 50 index members, 18 ended higher, 31 finished lower, and 1 was unchanged.
- China's Shanghai Composite increased 0.5%, benefiting from a late-day bump to finish in positive territory. The market was up 1.3%, but fell prone to selling efforts through much of the post-lunch session. The early push was helped along by the stimulus measures the PBOC announced after the market closed on Friday. Separately, Chinese officials started the fifth plenum planning session for economic and social policies. It is thought officials could lower the GDP growth target coming out of the meeting.
Major European indices trade mostly lower while Germany's DAX (+0.3%) outperforms. According to the Ifo Institute, the Volkswagen scandal has had no impact on Germany's auto industry as the domestic economy remains vigilant. - Participants received several data points:
- Germany's October Ifo Business Climate Index 108.2 (expected 107.8; prior 108.5) as Business Expectations rose to 103.8 from 103.3 (expected 102.4) and Current Assessment fell to 112.6 from 114.0 (consensus 113.5)
- UK's BBA Mortgage Approvals 44,500 (expected 46,200; prior 46,600) and CBI Industrial Trends Orders fell to -18 from -7 (consensus -8)
- Spain's PPI -3.6% year-over-year (prior -2.2%)
------ - Germany's DAX has added 0.3% thanks to gains in about 70% of its components. Lufthansa, Fresenius SE, Linde, and Adidas appear among the leaders, having added between 0.3% and 1.2%.
- UK's FTSE is lower by 0.1% with media and consumer names on the defensive. Burberry Group, Barratt Developments, Sky, and ITV are all down between 1.2% and 2.3%. On the upside, Aberdeen Asset Management has jumped 3.8%.
- In France, the CAC is lower by 0.4% with most components in the red. Peugeot, Safran, Valeo, and Total hold losses between 1.3% and 2.0%. On the flip side, Credit Agricole outperforms with a gain of 1.0%.
8:26 am: [BRIEFING.COM] S&P futures vs fair value: -5.30. Nasdaq futures vs fair value: -9.50. U.S. equity futures remain just below their flat lines as the quiet morning continues. The trading week is on course for a subdued start with investors responding to a few quarterly reports that have crossed this morning; however, none of today's reports have come from market-moving names. Last week, the Dollar Index (96.95, -0.18) returned to levels last seen in August, but today, the index is lower by 0.2% with the dollar giving up 0.5% to the Japanese yen (120.90) and trading lower by 0.1% against the euro (1.1023). 7:54 am: [BRIEFING.COM] S&P futures vs fair value: -5.20. Nasdaq futures vs fair value: -10.50. U.S. equity futures trade modestly lower amid mixed action overseas. The S&P 500 futures hover five points below fair value after spending the night in a six-point range. Meanwhile, Treasuries hold slim gains with the 10-yr yield down two basis points at 2.07%. Today's economic data will be limited to the 10:00 ET release of the September New Home Sales report (Briefing.com consensus 550K). In U.S. corporate news of note: - Check Point Software (CHKP 80.80, +0.37): +0.5% after beating earnings estimates.
- Lending Tree (TREE 108.90, +10.90): +11.1% in reaction to better than expected earnings and upbeat guidance.
- Xerox (XRX 10.48, +0.14): +1.4% after reporting a one-cent beat on below-consensus revenue. The company's Board of Directors has authorized a review of business portfolio and capital allocation options.
- Sohu.com (SOHU 44.77, -0.58): -1.3% after below-consensus revenue and below-consensus revenue guidance overshadowed earnings of $1.27/share that may not compare to estimates.
Reviewing overnight developments: - Asian markets ended mixed. Hong Kong's Hang Seng -0.2%, China's Shanghai Composite +0.5%, and Japan's Nikkei +0.7%
- In economic data:
- Singapore's September Industrial Production +0.5% month-over-month (expected 1.0%; prior -3.7%); -4.8% year-over-year (consensus -4.6%; last -7.1%)
- In news:
- China's Premier Li Keqiang said that the country's 7.0% growth target is not one that should be "defended to the death," and that 6.9% Q3 growth represents a reasonable reading
- Major European indices trade mostly lower. Germany's DAX +0.1%, France's CAC -0.6%, and UK's FTSE -0.2%. Elsewhere, Italy's MIB -0.5% and Spain's IBEX -0.2%
- Participants received several data points:
- Germany's October Ifo Business Climate Index 108.2 (expected 107.8; prior 108.5) as Business Expectations rose to 103.8 from 103.3 (expected 102.4) and Current Assessment fell to 112.6 from 114.0 (consensus 113.5)
- UK's BBA Mortgage Approvals 44,500 (expected 46,200; prior 46,600) and CBI Industrial Trends Orders fell to -18 from -7 (consensus -8)
- Spain's PPI -3.6% year-over-year (prior -2.2%)
- Among news of note:
- According to the Ifo Institute, the Volkswagen scandal has had no impact on Germany's auto industry as the domestic economy remains vigilant
5:52 am: [BRIEFING.COM] S&P futures vs fair value: -6.30. Nasdaq futures vs fair value: -12.60. 5:52 am: [BRIEFING.COM] Nikkei...18947.12...+121.80...+0.70%. Hang Seng...23116.25...-35.70...-0.20%. 5:52 am: [BRIEFING.COM] FTSE...6429.47...-14.60...-0.20%. DAX...10822.69...+28.20...+0.30%.
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