Tuesday erased Friday’s losses, the three day weekend did something perky to the bulls today. The volume was lacking and significantly lighter than Friday’s, leaving the downside with heavy volume and the upside with less conviction in the participants. The TRIN closed at .61 bullish and the VIX at 17.58 still staying over the 16.86 lows we saw last week. Oil closed up $1.02 to $79.02 and gold up $10.00 to $1140.50 an ounce.
After hours the beat on the top and bottom line and even gave inline guidance for next quarter. They were very upbeat and confident about the next quarters growth. However the stock is trading down about 2%, very similar to what we saw on Intel (INTC) last week with a run up ahead and a sell the news drop to follow. However INTC traded up in the after hours off earnings and fell after the opening. So we can look for the IBM to shake this drop off in the morning. Also SCHW, MU suffered a drop after hours on news, while RMBS rallied on news. Pretty mixed bag but the focus will be to the financials that report in the pre market and also on IBM tech sympathy reaction.
Into Wednesday we’ll have early data to help set the days tone along with the earnings. Futures tested both the daily and weekly pivots early Tuesday. Getting that out of the way and erasing Friday’s losses across the board. That really leaves us with a reset as we kick off February as the front month for options and start the second half of the month. The market sets just below last weeks highs and that will leave us with a key area to retest and break out or a rejection off this level.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 8:30 Building Permits, 8:30 PPI, 8:30 Core PPI, 8:30 Housing Starts. Thursday 8:30 Unemployment Claims, 10:00 Philly Fed Manufacturing Index, 10:00 Leading Index, 10:30 Natural Gas Storage, 11:00 Crude Oil Inventories. Friday nothing due out.
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market BAC, BK, EAT, COH, MS, STT, USB, WFC and after the bell EBAY, FFIV, NVEC, SBUX, XLNX. Thursday pre market SCHW, CAL, FITB, GS, KEY, LM, LUV, UNH, XRX, ZOLL and after the bell AMD, AXP, COF, GOOG, IGT, MSCC, SYNA. Friday pre market GE, KMB, MBFI, MCD, SLB, STI.
ES (S&P 500 e-mini) Wednesday’s pivot 1141.50, weekly pivot 1136. Intraday support: 1139.50, 1135, 1131.50, 1127.5, 1124.50, 1119.25, 1117.50, 1113.50 fills gap, 1110.75. Resistance: 1147.25, 1149.75, 1153, 1157, 1160.50, 1164.75