Commentary and Performance
For the first three hours of trading, stock prices were relatively unchanged until the bulls charged into an intraday breakout without retreating. The S&P 500 surpassed key price resistance at 2020 and closed @ 2023.86 (+29.62 / +1.49%). The Nasdaq-100 made a new 20-day high @ 4418.22 (+71.30 / +1.64%) while the small-cap Russell-2000 failed to clear resistance at 1170 despite an impressive close @ 1162.77 (+25.80 / +2.27%).
Interest rate indexes for the 10 and 30 Year treasuries respectively rose to levels @ 20.23 (+0.42% / +2.21%) and 28.73 (+0.34 / +1.20%).
The US Dollar began the day in negative territory, but rallied to positive territory @ 94.44 (+0.48 / +0.51%). Supporting the dollar were a strong unemployment claims report and comments from one of the EU’s governing council members which implied that the region is far from a pillar of economic strength itself. From a technical perspective, the dollar is near a significant level of support that has been successfully tested at least 3 times since May 2014.
In commodities, the World Gold Index hit a new 4-month high @ 1183.00 (+3.20 / +0.27%) and has now closed in positive territory for 9 of the last 10 trading sessions. Meanwhile, the WTI Crude Oil Index retreated on news of much higher than expected oil supply inventories before recovering losses and finishing @ 46.86 (+0.22 / +0.47%).
In real estate assets, the Dow Jones Real Estate Index closed @ 291.98 (+3.66 / +1.27%) and the Dow Jones Home Construction Index ended the day @ 578.77 (+7.87 / +1.38%).
Daily Chart Analysis
- Advancers (2638) vs. Decliners (282).
- New 5-day highs (669) significantly lagged the number of New 5-day lows (951)
- New 52-week highs (157) also trailed new 52-week lows (75)
- Bullish reversals (1042) lagged Bearish reversals (39)
Volume Radar Alerts
- Xerox Corp (XRX) @ 10.30 (+5.47%) on 545% volume surge
- Wynn Resorts Ltd (WYNN) @ 73.76 (+1.92%) on 136% volume surge
- Xilinx Inc. (XLNX) @ 46.27 (+0.89%) on 196% volume surge
- Keycorp (KEY) @ 13.31 (+4.72%) on 120% volume surge
- The Kroger Corp (KR) @ 37.07 (+2.04%) on 111% volume surge
- Garmin Ltd (GRMN) @ 32.28 (-12.66%) on 544% volume surge
- Seagate Tech Hldgs (STX) @ 41.44 (-13.31%) on 354% volume surge
- HCA Holdings Inc. (HCA) @ 72.21 (-5.01%) on 345% volume surge
- Wyndham Worldwide Corp (WYN) @ 74.14 (-3.95%) on 296% volume surge
- Western Digital Corp (WDC) @ 81.12 (-2.49%) on 165% volume surge
Market Moving Events
- Central Banks / Federal Reserve / Interest Rates: Based upon a recently weaker economic data, speculation and rumors have emerged that the Federal Reserve will defer any interest rate increases until next year.
- Central Banks / ECB / Quantitative Easing: The ECB’s Governing Council member, Nowotny, has reversed his outlook from 3 weeks ago by admitting that the Eurozone is clearly missing its target on headline and core inflation, which is leading speculators to deduce further quantitative easing may be due.
- China / Economic Policy / Telecom Industry: China’s government announced a $36bn plan to reorganize the country’s telecom industry and lead to anticipation of additional economic reforms within other industries in order to stimulate economic growth.
- Employment / USA: Jobless Claims remain at historically low levels and for the week of Oct-10-2015 were much lower than expected @ 255k vs. consensus @ 270k and previous @ 262k. The 4-week moving average for this widely followed data also hit a 42-month low @ 265k.
- Economy / Manufacturing / USA: The Empire State Manufacturing Survey for October-2015 contracted a reading of -11.36 vs. consensus @ -7.0 and previous @ -14.67.
- Economy / Business Sentiment / USA: The Philadelphia Fed Business Survey Outlook for October-2015 contracted to -4.5 vs. consensus @ -1.0 and previous @ -6.0.
- Commodities / Energy / EIA Report: Weekly Crude Oil Inventories for October-9-2015 surged by 7.6mm barrels vs. estimates @ 2.8mm to reach a level of 469mm. The buildup is attributed to a decline in refinery demand and increase in oil imports.
- Economy / Consumer / USA: The Consumer Price Index for September-2015 fulfilled expectations which called for a -0.2% contraction mth/mth. Annually, it was flat @ 0.0% vs. previous @ 0.2%.
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