Archive for July, 2013

Market Wrap

July 31st, 2013 No comments

S&P –0.01%

Chicago PMI 52.3 vs. 54 est./51.6 prior. New orders 53.9/54.6. Employment 56.6/57.8

Q2 GDP 1.7% vs. 1.1% est./prior 1.8% revised to 1.1%

ADP Jobs 200K vs. 179K est./prior 188K revised to 198K

Fed meeting. Not much change in the statement other than saying the economy is improving “modest” vs. “moderate” last time

$MA reported good earnings and said business is getting better in the U.S. and globally

Categories: News

Market Wrap

July 30th, 2013 No comments

S&P 500 +0.04%

Consumer confidence 80.3 vs. 81 est., 81.4 prior. Inflation expectations 5.5/5.5

Potash maker OAO Uralkali withdrew from a cartel hurting $POT $AGU $MOS stocks today

$FB rallied another 6.3% on news of an impending launch of video newsfeed ads

$COH in-line EPS, sales comp miss, guided down earnings and comps for FY14

$DDD missed EPS, sales beat, raised guidance on both lines for the year

$BWLD 9c EPS beat, tiny sales beat, sales comp miss, reiterates earnings guidance for year

Categories: News

Market Wrap

July 29th, 2013 No comments

S&P -0.37% The market opened down and chopped around that same level the rest of day. The Nikkei was down 3.3% again last night

Pending home sales –0.4% vs. –1.4% est., prior revised to 5.8% from 6.7%

Dallas Fed 4.4 vs. 6.4 est., 6.5 prior. New orders 10.8/13.0, employment 9.3/0.2

Dan Loeb’s quarterly letter was released where he wrote about being long $CF Link

BMW launched its i3 $41K electric car Link

Categories: News

Market Wrap

July 26th, 2013 No comments

S&P 500 +0.08% After an almost 1% 90 minute dip from the open, the market rallied and closed in the green. There was not much news intra-day

University of Michigan consumer sentiment 85.1 vs. 84.0 est., 83.9 prior
1 year inflation expectations 3.1% vs. 3.3% prior

Greenlight Capital quarterly letter came out. David Einhorn writes he sold his MSFT and covered his JCP short Link

Categories: News

Market Wrap

July 25th, 2013 No comments

SP500 +0.26%. The market rallied in the afternoon on a WSJ Hilsenrath article that speculated that the Fed may lower the 6.5% unemployment threshold to raise rates

Durable goods orders 4.2% vs. 1.5% prior 3.6% revised to 5.2%. Ex-transportation 0% vs 0.6% est., prior 0.7% revised to 1%

Jobless claims 343K vs. 341K est.

$ZNGA guides next quarter bookings to $125-150M vs. $193M est. "anticipates 2-4 quarters of volatility as we work through resetting..strategy"

Categories: News

Market Wrap

July 24th, 2013 No comments

SP500 –0.38%. The market traded down from the open perhaps from a better than expected Markit U.S. PMI number and housing data, which spurred a decline in U.S. Treasuries and the stock market.

Markit U.S PMI manufacturing index 53.2 vs. 52.8 est., 52.2 prior

HSBC China manufacturing PMI 47.7 vs. 48.6 est., 48.2 prior

New Home Sales 497K vs. 481K est., prior revised to 459K from 476K

French Mfg. PMI 49.8 vs. 48.9 est., 48.4 prior

German Mfg. PMI 50.3 vs. 49.3 est., 48.6 prior

EU Mfg. PMI 50.1 vs. 49.1 est., 48.8 prior

$CAT missed by 25c and $300M in sales. Cited poor order trends on the call and weakness in China

$FB beat by 5c and $190M in sales. Ad revenue growth accelerated to 61% y/y from 43% y/y last quarter due to a ramp in newfeeds ads. Company said comps will be tougher rest of year as the newfeeds ads started began in the second half of last year

$QCOM in-line EPS and $190M beat in sales. Guidance bracketed the street. Stock rallied due to low expectations going into the print

$BIDU beat on both lines

$EQIX misses sales by $7.6M

$TRIP nice beat on both lines

Categories: News

Market Wrap

July 23rd, 2013 No comments

S&P –0.19%. Market was slightly negative most of the day after a weak Richmond Fed survey report

Richmond Fed -11 vs. 8 est/7prior. New orders -15 vs. 9 prior. Employment 0 vs. 0 prior

$AAPL small beat both lines, small guide-down for next quarter

iPad sell-through –3% y/y, units –14% y/y vs. +65% y/y last quarter
Gross margin stabilized, iPhone ASP $581 vs. $597 est., iPhone units 31M vs. 26.1M est., iPad 14.6M vs. 17.4M est

$PNRA company same-store 3.8% vs. 4.4% est., guides down earnings 1.32-1.36 vs. 1.46 next quarter

Julian Robertson likes $GOOG over $AAPL Link

Media reports that China sees 7% growth as the lower limit Link

Categories: News

Market Wrap

July 22nd, 2013 No comments

S&P +0.20%. Market was choppy intra-day and didn’t seem to care much about a housing data miss at 10am and negative “global macro is getting worse” comments from McDonalds

Existing Home Sales for June 5.08M vs. 5.27M est.

$YHOO buys 40 million shares of Yahoo stock from Dan Loeb for $29.11, Friday’s close. Third Point will own 20 million shares after the transaction and Dan Loeb will resign from the Board

$MCD cautious comments for July (flat same-store) and rest of the year

$NFLX 9c EPS beat, in-linish sales and sub numbers. Guidance slightly below the street

$TXN 1c beat ex-items, in-line sales. Guidance in-line sales and EPS 2c guide up vs. street

$AAPL Mac sales –12% y/y in June accord to NPD and –5% y/y for June quarter domestically

President of Portugal ruled out a snap election which bid up the euro in the morning Link

$EBAY expands same-day delivery service to more cities Link

Japan Abe’s coalition gained seats in the upper-house of parliament as expected Link

Categories: News

Market Wrap

July 19th, 2013 No comments

S&P +0.16%. The market shook off bad Google, Microsoft, and Intuitive Surgical earnings reports and closed green on this options expiration day due to news China is eliminating the lower limit on bank lending rates (Link) and GE commenting on better margins, profits, and orders in the second half of the year (Link).

Philippe Laffont Coatue PM interviews Link1 Link2

Klarman: Economy ‘House of Cards’, ‘Will Eventually Implode’ Link

Categories: News

Market Wrap

July 18th, 2013 No comments

S&P +0.50%. The market rallied strongly in the first 90 minutes of the session on better than expected jobless claims and Philly Fed survey data. Later on the ECB also lowered ABS collateral requirements to banks in an attempt to boost bank lending.

Futures however sold after-hours on bad earnings results from Google and Microsoft; in addition to confirmation of the city of Detroit declaring bankruptcy.

Jobless claims 334K vs. 344K est./prior revised to 358K from 360K

Philly Fed 19.8 vs. 9 est., 12.5 prior. New orders 10.2 vs. 16.6 prior. Employment 7.7 vs. –5.4 prior Link

Bernanke testified at the Senate. When asked specifically about a taper in September, he said “way too early” to tell, “looking for a pickup as the year progresses”, will “look at the data”, look for “improvement in labor market indicators”, and a “pickup in (economic) growth”

Ben wants to see both an improvement in the economy and jobs numbers, which will confirm that the labor market numbers are sustainable before they taper QE.

Today his tone was much more even-handed with the market hitting all-time highs, where he even admitted the last monthly jobs number was good. This is something he wouldn’t do the previous 2 public outings due to the weaker market conditions.

$OSTK +22% big beat on both lines. Revenue accelerated to +22% y/y from negative growth 6 quarters ago

$TSM brought down their semiconductor industry forecast for 2013 and said supply chain inventory was higher than they expected. The stock tumbles at the open in Taiwan

$SAP missed software license revenue 982M euros vs. 1.02B est. and guided down for the year due to weakness in Asia Link

$NOK misses sales by 11%. Windows phone shipments 7.1M vs. 8.1M est

ECB reduced collateral requirement for ABS from 16% to 10% in an attempt to help boost bank lending to small businesses Link

Detroit declares bankruptcy

$GOOG misses earnings and sales due to higher tax rate and operating expenses. 9.56 EPS vs. 10.78 est. Paid click 23% vs 20.2% est., cost-per-click –6% vs. –2.6% est.

$MSFT misses sales by a mile due to weakness in PC demand

Why Everybody Loves $TSLA Link

Categories: News