Market Week in Review

S&P 500 1,838.70 -.20%*




The Weekly Wrap by Briefing.com.

*5-Day Change

Weekly Scoreboard*

Indices

• S&P 500 1,838.70 -.20%

• DJIA 16,458.60 +.13%

• NASDAQ 4,197.58 +.55%

• Russell 2000 1,168.43 +.34%

• S&P 500 High Beta 30.44 -.62%

• Wilshire 5000 19,360.50 -.13%

• Russell 1000 Growth 861.56 +.03%

• Russell 1000 Value 923.23 -.37%

• S&P 500 Consumer Staples 433.24 -.86%

• Morgan Stanley Cyclical 1,471.11 -.05%

• Morgan Stanley Technology 918.22 +2.11%

• Transports 7,427.46 -.52%

• Utilities 492.70 -.24%

• Bloomberg European Bank/Financial Services 114.01 +2.35%

• MSCI Emerging Markets 40.06 +.14%

• HFRX Equity Hedge 1,173.95 +.49%

• HFRX Equity Market Neutral 955.63 +.34%

Sentiment/Internals

• NYSE Cumulative A/D Line 200,668 +.38%

• Bloomberg New Highs-Lows Index 554 -94

• Bloomberg Crude Oil % Bulls 38.24 unch.

• CFTC Oil Net Speculative Position 327,351 -1.11%

• CFTC Oil Total Open Interest 1,623,027 +.20%

• Total Put/Call .70 -6.67%

• OEX Put/Call .94 -44.05%

• ISE Sentiment 132.0 +24.53%

• NYSE Arms 1.33 +11.76%

• Volatility(VIX) 12.44 +2.47%

• S&P 500 Implied Correlation 51.56 +5.61%

• G7 Currency Volatility (VXY) 7.81 +1.03%

• Emerging Markets Currency Volatility (EM-VXY) 8.64 +1.89%

• Smart Money Flow Index 11,926.38 -.25%

• ICI Money Mkt Mutual Fund Assets $2.700 Trillion -.52%

• ICI US Equity Weekly Net New Cash Flow -$3.362 Billion

• AAII % Bulls 38.99 -10.6%

• AAII % Bears 21.49 -14.04%

Futures Spot Prices

• CRB Index 278.41 +1.08%

• Crude Oil 94.37 +1.59%

• Reformulated Gasoline 262.04 -2.19%

• Natural Gas 4.33 +6.13%

• Heating Oil 302.37 +2.52%

• Gold 1,251.90 +.27%

• Bloomberg Base Metals Index 195.30 +2.39%

• Copper 334.45 +.02%

• US No. 1 Heavy Melt Scrap Steel 383.0 USD/Ton +1.06%

• China Iron Ore Spot 127.30 USD/Ton -2.60%

• Lumber 369.80 +.46%

• UBS-Bloomberg Agriculture 1,331.62 -.15%

Economy

• ECRI Weekly Leading Economic Index Growth Rate 3.7% +120 basis points

• Philly Fed ADS Real-Time Business Conditions Index .0006 +107.9%

• S&P 500 Blended Forward 12 Months Mean EPS Estimate 120.33 +.09%

• Citi US Economic Surprise Index 66.60 +1.1 points

• Citi Emerging Markets Economic Surprise Index 4.80 +5.7 points

• Fed Fund Futures imply 32.0% chance of no change, 68.0% chance of 25 basis point cut on 1/29

• US Dollar Index 81.18 +.69%

• Euro/Yen Carry Return Index 147.34 -.80%

• Yield Curve 245.0 -4 basis points

• 10-Year US Treasury Yield 2.82% -4 basis points

• Federal Reserve's Balance Sheet $4.029 Trillion +1.09%

• U.S. Sovereign Debt Credit Default Swap 27.50 -1.24%

• Illinois Municipal Debt Credit Default Swap 151.0 -2.72%

• Western Europe Sovereign Debt Credit Default Swap Index 49.68 -.63%

• Asia Pacific Sovereign Debt Credit Default Swap Index 107.10 +.09%
  

• Emerging Markets Sovereign Debt CDS Index 219.0 +1.39%
  

• Israel Sovereign Debt Credit Default Swap 93.0 -6.1%

• South Korea Sovereign Debt Credit Default Swap 68.50 +2.24%

• China Blended Corporate Spread Index 333.50 +5.5 basis points

• 10-Year TIPS Spread 2.25% -2.0 basis points

• TED Spread 20.5 unch.

• 2-Year Swap Spread 13.25 +1.25 basis points

• 3-Month EUR/USD Cross-Currency Basis Swap -1.25 +.5 basis point

• N. America Investment Grade Credit Default Swap Index 64.66 +.33%
  

• European Financial Sector Credit Default Swap Index 85.50 -.58%
  

• Emerging Markets Credit Default Swap Index 291.98 +4.29%
  

• CMBS AAA Super Senior 10-Year Treasury Spread  to Swaps 108.0 -2.0 basis points

• M1 Money Supply $2.645 Trillion -.18%

• Commercial Paper Outstanding 1,035.60 -2.20%

• 4-Week Moving Average of Jobless Claims 335,000 -14,000

• Continuing Claims Unemployment Rate 2.3% +10 basis points

• Average 30-Year Mortgage Rate 4.41% -10 basis points

• Weekly Mortgage Applications 386.10 +11.9%

• Bloomberg Consumer Comfort -31.0 -2.6 points

• Weekly Retail Sales +2.90% -70 basis points

• Nationwide Gas $3.30/gallon -.01/gallon

• Baltic Dry Index 1,398 -18.05%

• China (Export) Containerized Freight Index 1,115.55 +1.60%

• Oil Tanker Rate(Arabian Gulf to U.S. Gulf Coast) 35.0 +16.7%

• Rail Freight Carloads 235,987 +26.3%

Best Performing Style

• Small-Cap Growth +.5%

Worst Performing Style

• Large-Cap Value -.4%

Leading Sectors

• Gold & Silver +6.0%

• Biotech +3.8%

• Coal +3.6%

• Networking +3.3%

• Computer Hardware +2.9%

Lagging Sectors

• Restaurants -2.0% 

• Energy -2.1%

• Road & Rail -2.2%

• Hombuilders -2.7%

• Retail -5.4%

Weekly High-Volume Stock Gainers (39)

• CANN, PTCT, SRPT, KIN, RTRX, CTRL, TLOG, FMI, ALNY, DTLK, NPO, NLNK, RENT, OCRX, BEAM, PMC, ECYT, MRTX, APFC, FRAN, GTI, AOL, ATRC, WWE, LOCK, CEC, BLUE, IXYS, GHL, ARCP, ISRG, MFRM, COLE, RPTP, JW/A, NCS, ALSN, CLVS and SKT

Weekly High-Volume Stock Losers (20)

• TPH, DSW, SSI, ETM, AAN, SGI, LKQ, SHLD, BYD, SBGI, SCVL, FIVE, NXST, PSMT, LIN, FWM, GME, USNA, BBY and NUS

Weekly Charts
ETFs

• High-Volume Gainers

• High-Volume Losers

Stocks

• High-Volume Gainers

• High-Volume Losers

*5-Day Change

Stocks Reversing Lower into Final Hour on Earnings Worries, Emerging Markets Debt Angst, Technical Selling, Homebuilding/Tech Sector Weakness

Broad Equity Market Tone:

• Advance/Decline Line: Lower
  

• Sector Performance: Most Sectors Declining
  

• Volume: Above Average

• Market Leading Stocks: Underperforming

Equity Investor Angst:

• Volatility(VIX) 12.60 +.56%

• Euro/Yen Carry Return Index 147.13 -.74%

• Emerging Markets Currency Volatility(VXY) 8.64 -.46%

• S&P 500 Implied Correlation 52.36 +.52%

• ISE Sentiment Index 128.0 -20.50%

• Total Put/Call .72 -7.69%

• NYSE Arms 1.24 -20.11% 

Credit Investor Angst:

• North American Investment Grade CDS Index 65.11 +.25%

• European Financial Sector CDS Index 85.50 +.33%

• Western Europe Sovereign Debt CDS Index 49.68 -.63%

• Emerging Market CDS Index 292.19 +1.42%

• 2-Year Swap Spread 13.25 +.75 basis point

• TED Spread 20.5 unch.

• 3-Month EUR/USD Cross-Currency Basis Swap -1.0 -1.5 basis points

Economic Gauges:

• 3-Month T-Bill Yield .03% unch.

• Yield Curve 244.0 -2 basis points

• China Import Iron Ore Spot $127.30/Metric Tonne -.78%

• Citi US Economic Surprise Index 66.60 -2.6 points

• Citi Emerging Markets Economic Surprise Index 4.8 +3.2 points

• 10-Year TIPS Spread 2.24 unch.

Overseas Futures:

• Nikkei Futures: Indicating +39 open in Japan

• DAX Futures: Indicating -30 open in Germany

Portfolio: 

• Slightly Higher: On gains in my biotech sector longs, index hedges and emerging markets shorts

• Disclosed Trades: Added to my (IWM)/(QQQ) hedges

• Market Exposure: Moved to 25% Net Long

Today's Headlines

Bloomberg:

• ICBC Won’t Repay Troubled China Trust Product, Official Says. Industrial & Commercial Bank of China Ltd. is rejecting calls to bail out a troubled 3 billion-yuan ($495 million) trust product, a bank official with knowledge of the matter said, stoking concern that the nation’s first default on such high-yield investments may be looming. ICBC, which distributed the product sold by a trust company to raise funds for Shanxi Zhenfu Energy Group, won’t assume primary responsibility after the coal miner collapsed, according to the executive, who asked not be identified while negotiations continue. China’s largest bank may be forced to repay investors, most of whom were Beijing-based ICBC’s own private banking clients, Guangzhou Daily reported yesterday. 

• European Stocks Climb as Commodity Producers, Accor Rise. European stocks rose to their highest level in six years as mining companies rallied, and a report showed builders started work on more houses in the U.S. last month than economists had forecast. Glencore Xstrata Plc and Rio Tinto Group both climbed at least 1.5 percent, pushing a gauge of commodity producers to its biggest three-day gain since August. Accor SA rose 1.6 percent as Europe’s largest hotel operator said that 2013 profit probably reached the upper end of its forecast. Royal Dutch Shell Plc slipped after saying that higher exploration costs and lower volumes will hurt fourth-quarter earnings. The Stoxx Europe 600 Index added 0.6 percent to 335.82 at the close.

• Citigroup(C) Cuts 950 Mortgage-Servicing Jobs. Citigroup Inc. (C), the third-biggest U.S. bank by assets, is cutting 950 jobs in default mortgage servicing after selling some business to Fannie Mae.

• Schlumberger(SLB) Earnings Advance as Customers Boost Spending. Schlumberger Ltd. (SLB), the largest oilfield-services provider, said fourth-quarter profit rose 22 percent as customers spent more in the search for harder-to-reach deposits around the globe.

Wall Street Journal: 

• Obama’s Plan Leaves Unanswered Questions. The U.S. government would no longer store nearly every American’s phone records, under major intelligence reforms laid out Friday by President Barack Obama. But someone would. And who that will be remains a mystery. The phone companies don’t want to do it, and communications experts caution that it may be a difficult technical matter to get those companies to combine their data sets in a way that is useful to government counter-terrorism programs. The president spoke is broad terms – about the terror dangers that led to the growth of bulk surveillance programs, the potential risks those programs create, and the challenges of privacy in the digital age.

Fox News: 

• UN cancels Jewish exhibit at last minute on Arab complaints. 

• Al Qaeda asks Iraqis for support in fight against government. Members of Al Qaeda's branch in Iraq handed out pamphlets in Fallujah on Thursday, urging people to take up arms and back them in their weekslong fight against government troops for control of the city.

MarketWatch: 

• GE(GE) nails profit target, misses on margins.

• Six ratios say this market is very overbought. Opinion: The time to build a larger cash position may be near.

• It’s a paradox: Morgan Stanley(MS) stock shoots higher on lackluster earnings.

• Gold contrarians say it’s time to start buying.

ZeroHedge: 

• Starts Plunge 9.8% As Housing Permits Miss By Most In 7 Months. (graph)

• UPS Misses, Guides Lower, Blames Miss On Surge In Business, "Weather Events".

• IMF Warns These 4 European Nations Are "Potentially Destabilizing" To Global Economy.

• Consumer Confidence Slides, Misses By Most In 8 Years. (graph)

• Turkish Lira Has Collapsed 10% To Record Low Since Fed Taper; External Funding Needs Remain High. (graph)

• An Update On The Housing "Recovery". (graph)

• The New Normal Paradox: All The Job Gains With Half The Hiring? (graph)

• "Euphoric"-er. (graph)

ValueWalk:

• Paul Singer To Warn Of Derivatives Catastrophe At Davos. Paul Singer’s speech and later debate on the topic “Are Markets Safer Now?” is expected to shake the very foundation of the elite event, according to a letter to investors reviewed by ValueWalk. “We can only assume that the reason the global financial system is still… overleveraged, opaque, reliant upon the implicit and explicit support of governments for its very existence… is that fixing the problem would be too painful for powerful special interest groups,” the rough draft says, setting up for the next warning and pointing to government bailouts and the political lobbying machine that ensures they remain intact.

Business Insider:

• Chinese Millionaires Are Leaving The Country In Droves.

• A Wave Of Chinese Trust Defaults Might Be Underway And Things Could Get Scary For Chinese Banks.

• Goldman Sachs(GS) Figured Out A Way To Evade European Bonus Laws — Just Don't Call It A 'Bonus'.

NY Times:

• Hurdles Remain for Apple(AAPL) in China Despite New Deal. Apple is counting on a long-awaited agreement with China Mobile, the world’s largest cellular operator, to reverse its fortunes in China. But the initial reception was muted on Friday, when customers were finally able to buy iPhones from China Mobile. Instead of the round-the-block lines that have greeted Apple product introductions in China and other countries in the past, only about a dozen customers showed up to buy iPhones at the opening of a store in Beijing – despite the presence of a special guest, the Apple chief executive, Timothy D. Cook.

Reuters: 

• At least six US merchants suffering Target(TGT)-style attacks: Report. The cyber security firm IntelCrawler said on Friday that it has uncovered six ongoing attacks at merchants across the United States whose credit card processing systems are infected with the same type of malicious software used to steal data from some 40 million credit cards at Target Inc.

• Brazil's jobless rate revised up under new methodology. The new report, called PNAD Continua, showed Brazil's average jobless rate stood at 7.4 percent in 2012 and 7.7 percent in the first half of 2013, government statistics agency IBGE said on Friday. Under a previous methodology that included only six major metropolitan areas, Brazil's average unemployment rate was estimated at 5.5 percent in 2012 and 5.7 percent in the first half of 2013. 

• EMERGING MARKETS-Brazil stocks drop after economy skids in November.

• Spain's bad loans ratio reaches new record high at 13.08 pct in Nov. Spanish banks' bad loans as a percentage of total lending reached a fresh record high of 13.08 percent in November, up from 12.99 pct in October, Bank of Spain data showed on Friday. The ratio has been steadily climbing as households and small companies struggle with debts and as banks, fighting to improve their own capital quality ahead of Europe-wide stress tests, rein in lending. Bad debts rose month on month by 1.5 billion euros ($2.04 billion) to 192.5 billion euros in November. Total credit, meanwhile, rose slightly by 2.6 billion euros to 1.47 trillion euros, the data showed.

Bear Radar

Style Underperformer:

• Small-Cap Growth -.52%

Sector Underperformers:

• 1) Homebuilders -1.12% 2) Alt Energy -1.11% 3) Restaurants -.83%

Stocks Falling on Unusual Volume:

• RDEN, SSNI, BBY, BJRI, SLM, AAWW, PBCT, QIWI, INTC, COF, MAIN, ASML, CPA, IBCP, RGR, CNW, MAS, SINA, BUD, UPS, EW, MTB, LKQ, GNRC, RESI, CAKE, SPLS, IGTE, PBCT, PGEM, COTY, RGR, ZLTQ, GTI and NUS

Stocks With Unusual Put Option Activity:

• 1) SPLS 2) ILMN 3) HON 4) UPS 5) INTC
  

Stocks With Most Negative News Mentions:

• 1) UPS 2) JPM 3) AAWW 4) SINA 5) RDEN
  

Charts:

• ETFs Falling on Unusual Volume

• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Large-Cap Growth -.08%

Sector Outperformers:

• 1) Gold & Silver +2.83% 2) Gaming +1.08% 3) Biotech +.59%
  

Stocks Rising on Unusual Volume:

• LIVE, SWKS, ILMN, KERX, AXP, FEYE, NUS, MS, EA, GPRE, AUXL, OMED, ICPT, GOGO, TWTR and ANGI

Stocks With Unusual Call Option Activity:

• 1) SLM 2) ATHN 3) MDVN 4) KERX 5) TJX

Stocks With Most Positive News Mentions:

• 1) IBM 2) MS 3) TWTR 4) AMZN 5) AXP
  

Charts:

• ETFs Rising on Unusual Volume 

• Stocks Rising on Unusual Volume