S&P 500-.4%
NASDAQ-1.5%
Leading/Lagging Sectors
Airlines+1.1%
Drugs+.8%
Defense+.6%
Networking-3.5%
Internet-2.5%
Homebuilders-2.2%
Market Movers
CIEN,CSCO down on profit-taking and CIEN guidance.
ASYT down on earnings report and 3 downgrades.
FLIR up on earnings surprise and raised guidance.
HET down on earnings disappointment...higher gaming taxes and development costs.
PSFT up as ORCL boosts offer price to $26...its final offer.
TOM up earnings report...lower store costs.
WEBX up on earnings report...raised guidance...gets 1 upgrade.
Other
Crude Oil 33.35-2.2%
Lumber 344.5+2.99%
VIX 17.71+2.13%
Mid-day News
ISM services index rose to a record in January and factory orders in December increased for the 3rd time in 4 months, suggesting the economy is picking up steam. The ISM number was 65.7, the highest since the surveys inception in 97. This was up from a prior reading of 58 and exceeded the 60 estimate. Factory orders +1.1% vs. -.9% last month and exceeding the estimate of .2%. This number is VERY important since services account for 85% of the US economy. Economists are now estimating GDP of 4.4% for the 1stQ. I am thinking north of 5%. The employment number this Fri. is key. Expectations are for the creation of 175,000 jobs. I think we will meet this number. Ed Yardeni, chief investment strategist at Prudential said on CNBC he thinks we are in the midst of the greatest sycronized global recovery we have ever see and that the Fed will raise rates at its next 3 meetings 25 basis points each. FDA changed the way drugmakers have to disclose risks. Instead of alot of fine print they will be required to highlight the most important risks and leave out smaller ones.
BOTTOM LINE: I have taken profits in a few positions today...1 Long and 2 shorts. I have also added 2 new short positions. This leaves me about 10% net short. I am thinking we will see a short-term bottom some time tomorrow. However, alot depends on the employment data Fri. If it meets or exceeds expectations then we probably rally...if not, we probably continue downward. I will be looking to cover some shorts at some point tomorrow.
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