The S&P 500 closed @ 2175.49 (-6.25 / -0.29%). Essentially, this reflects no change in its value, but volume continues to wane as its exchange traded fund, the SPY, traded on -39% lower than average daily volume. Relative strength continues to remain robust and there appears to be a standoff between bulls and bears. It almost Perhaps the bears are patiently biding their time as buyer exhaustion is reflected in a pattern of consistently weaker volume. For now, the trend remains bullish and it would inadvisable to fight the tape at this juncture.
Wednesday’s analysis of leaders in terms of percentage volume changes are as follows:
- Technology Sector / Semiconductor Equipment & Materials: KLA Tencor Corp (KLAC) @ 69.47 (-10.26% on +583% higher volume) sold off as its merger plans with Lam Research (LCRX) may not obtain approval from antitrust regulators.
- Healthcare Sector / Drug Manufacturers: Perrigo Co. (PRGO) @ 86.00 (-9.56% on +464% higher volume) did not meet earnings expectations. The company reported actual EPS @ $1.93 vs consensus @ $1.998.
- Technology Sector / Solar: First Solar Inc (FSLR) @ 38.66 (-7.20% on +412% higher volume). Although the stock is rated an “overweight” by Barclays, its target price was lowered to $50 from $68.
- Technology Sector / Semiconductor Equipment & Materials: Lam Research (LRCX) @ 89.11 (-4.48% on +219% higher volume) declined in sympathy as investors were disappointed by the prospect of its potential merger with KLA Tencor (KLAC) may not meet regulatory approval.
- Consumer Cyclical Sector / Apparel Manufacturing: Ralph Lauren Corp (RL) @ 103.14 (+8.49% on +172% higher volume) killed its earnings report with actual EPS @ $1.06 vs. consensus @ $0.89.