View From The Hill: November-4-2015

Posted on Posted in Views From The Hill

Commentary and Performance

bulls-and-bears4Technically, it was a negative day for equities. However,  given the resiliency displayed by the market, I would consider it a positive trading session. Proximity to key price resistance levels and the less than dovish comments from Fed Chairperson Yellen who issued a sobriety test to the market by confirming the potential for a rate hike in December did not lead to panic. Economic data were mixed but signs of growth still exist despite some pockets of deceleration.

The SP-500 closed @ 2102.31 (-7.48 / -0.35%). The Nasdaq-100 barely budged @ 4717.55 (-1.50 / -0.03%). Nor did the Rusell-2000 @ 1190.38 (-1.20 / -0.10%).

The VIX shared its glory with no one today and finished up @ 15.51 (+0.97 / +6.67%).

Federal Reserve ChairpersonJanet Yellen’s remarks had very little effect upon Treasury rates as the 10-Yr closed @ 22.30 (+0.10 / +0.45%) and the 30-Yr ended @ 29.94 (-0.07 / -0.23%).

The US Dollar Index responded more favorably to the prospects of higher interest rates. The Almighty ascended to a higher level @ 97.87 (+0.64 / +0.66%).

Gold moved closer to the 1100 barrier to end @ 1106.20 (-11.00 / -0.98%). WTI Crude Oil gave back some of yesterday’s gains and may be starting to consolidate @ 46.32 (-1.36 / 2.85%).

In real estate, the Dow Jones Real Estate Index continued to consolidate @ 297.35 (-1.41 / -0.47%) while the Dow Jones Home Construction Index made a second unsuccessful attempt to clear resistance at its 22-day moving average and closed @ 580.15 (-2.58 / -0.44%).

 


Daily Chart Analysis

The SP-500 is encountering resistance at these levels as anticipated due to an overbought condition. On a positive note, it still remains within the bullish channel and is maintaining support at the bottom channel trend line.  This looks like an ideal area for consolidation if the bullish advance is to be sustainable.

Until further notice, it’s Hillbent for the Market Direction…

 

sp500-daily-11-4-2015
Click to enlarge

 


Market Breadth

  • Advancers (1294) vs. Decliners (1579).
  • New 5-day highs (948) vs. New 5-day lows (333)
  • New 52-week highs (196) vs. new 52-week lows (70)
  • Bullish reversals (258) vs. Bearish reversals (495)

 


Volume Radar Alerts

 

Stocks prices increasing on high volume
Company Price % Chg Vol Surge %
Michael Kors Hldg Ltd (KORS) 42.57 +8.27% 424%
Fidelity Nat’l Info Services (FIS) 65.54 +1.76% 263%
 3D Systems Corp (DDD)  11.49  +10.06%  233%
 Charles River Labs Int’l (CRL) 71.47 +4.31%  222%
 Bruker Corp (BRKR) 19.35 +2.82%  217%
 Stock prices declining on high volume
Company Price % Chg Vol Surge %
Groupon Inc (GRPN) 2.97 -26.30%  736%
DSW Inc (DSW) 22.59 -7.83% 687%
Booze Allen Hamilton Hldg Corp (BAH) 29.00 -2.59% 582%
Clean Harbors Inc (CLH) 42.81 -6.81% 393%
Time Warner Inc (TWX) 72.20 -6.60 380%

Market Moving Events

Bullish

  • Economy / Services & Industries / USA: The ISM Non-Manufacturing Index for October-2015 expanded  @ 59.1 vs. consensus @ 56.7 and prior @ 56.9.
  • Economy / Services / UK: Great Britain’s CIPS/PMI Services Index for October-2015 continued to improve @ 54.9 vs. consensus @ 54.5 and actual @ 53.3.

Bearish

  • Central Banks / Monetary Policy / USA: Fed Chairperson, Janet Yellen, spoke before the House Financial Services Committee and confirmed that a rate hike in December is still on the table should the economic data warrant it.
  • Economy / Services / USA: The PMI Services Index for October-2015 indicated slower growth @ 54.8 vs. consensus @ 54.8 and prior @ 55.1.
  • Commodities / Energy / USA: The EIA Petroleum Status report for Oct-30-2015 confirmed another increase in crude oil inventory supplies @ +2.8mm bbl vs. consensus @ 2.4mm and prior @ 3.4mm.

Neutral

  • Economy / Employment / USA: The ADP Employment Report for October-2015 met ADP’s target for private payrolls @ 182k vs. consensus @ 185k and prior revised @ 190k.
  • Economy / Trade / USA: The International Trade Balance for September-2015 was in line with expectations. Actual results were @ -$40.8bn vs. consensus @ -$41.1bn and prior revised @ -$48.0bn.
  • Economy / Manufacturing & Services / Europe: The EU’s PMI Composite for October-2015 remains in expansion mode @ 53.9 for the Composite and 54.1 for Services vs. consensus respectively @ 54.0 and 54.2. Prior month’s results for Composite was @ 53.6 while Services @ 53.7.

 


Notable Earnings

 

Pre-Market (Nov-4-2015)
Company Actual Estimates
Lumber Liquidators Hldg Inc (LL) -0.31 -0.214
Time Warner Inc (TWX) 1.25 1.09
Michael Kors Hldgs (KORS) 1.01 0.89
Wendy’s Co (WEN) 0.09 0.07
Avon Products Inc (AVP) -0.11 0.07
Sodastream Int’l Ltd (SODA) 0.22 0.215
Virtu Financial Inc (VIRT) 0.04 0.32
After-Market (Nov-4-2015)
Company Actual Estimates
FaceBook (FB) 0.57 0.352
GoDaddy Inc (GDDY) -0.04 -0.085
Whole Foods Market Inc (WFM) 0.16 0.349
Qualcomm Inc (QCOM) 0.91 0.712

 


Disclaimer

Hillbent does not provide individualized market advice. The information we publish regards securities in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification. Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements. Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

 

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