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The Fed's Open Market Operations desk performed 1 repurchase operation - a paltry $1.75billion, overnight repurchase entirely in T-backed collateral undertaken at a 5.1 basis point discount to the Fed Funds Rate (FFR).
Major US Indices
The Dow Jones Industrial Average dipped 7.13 points (0.07%), closing out the day at 10377.87 points. The index hit an intraday high of 10411.65 just after the end of a very turgid first hour (at which time there was our old friend the CCI selling divergence... yay!!). The index then turned and headed for the Mexican border, dropping almsot 100 points from its high, to register the sessin low at 10316.88 (and - I kid you not - register a CCI buying divergence on the low bar of the day).
It's been a while since I sticky-taped in a chart to show the intraday divergences at work. That's not because they haven't been happening (or working) - it's just because for some rason the images being generated have ballooned in size from about 27k (which is manageable) to over 60k (which is a bit bloated, frankly). This makes the page slow to load for those without broadband. I've tried to 'trim' the bloat, and today got the filesize back down to 35k-ish. I think it's the colour scheme (which I changed a couple of weeks ago), but maybe the fact that I grab the entire TradeStation chart window (rather than excising only the chart content itself) is also a factor.
Anyhow - here's the chart: note the perfectly-formed CCI selling divergence that occurred on the spike just after the end of the first hour; it was something I commented on in real-time during the session. By the time of the buying CCI divergence later in the day, I was asleep. Don't pay too much attention to the dark green/red PaintBars - all they do is show when the moving average of the %R is in the extreme overbought/oversold region.
Within the blue-chip index, 15 stocks rose, the biggest gainers being Du Pont (DD, +2.98% to $40.80) and Verizon Communications (VZ, +1.00% to $30.39), which accounted for 12 Dow points between them. Losers in the Dow numbered 15 and were led by Hewlett Packard (HPQ, -2.73% to $27.48) and Wal Mart (WMT, -1.77% to $45.39), with these two stocks contributing -13 Dow points worth of downward pressure on the index. Volume traded was tilted in favour of the gainers by 228.9m shares to 155.6m.
The broader S&P500 slid 2.84 points (0.24%), at 1196.54. Within the index, gainers numbered 161, while 319 S&P500 stocks fell for the day. Volume was tilted 1.7:1 in favour of the losers with 1216.49 million units traded in the losers as compared with 720.57 million traded in the winners .
Over at Times Square, the Nasdaq Composite lost 6.38 points (0.3%), to close at 2109.45, while larger-cap technology issues fared worse with the Nasdaq100 losing 4.83 points (0.3%), to end at 1585.82 points. Within the tech benchmark, gainers numbered 39, while 53 Nasdaq100 stocks fell for the day. Volume was tilted 1.5:1 in favour of the losers with 400.33 million traded in the losers compared to 261.84 million in the winners .
NYSE Volume was super-chunky, with 2.31 billion shares changing hands, while Nasdaq Volume was chunky, with 1.64 billion shares being shifted from one online brokerage account to another (and back again, in all likelihood).
| Major Market Statistics | |||
| Index | Close | Gain(Loss) | % |
| Dow Jones Industrial Average | 10377.87 | -7.13 | -0.07% |
| S&P500 | 1196.54 | -2.84 | -0.24% |
| Nasdaq Composite | 2109.45 | -6.38 | -0.3% |
| Nasdaq100 | 1585.82 | -4.83 | -0.3% |
| NYSE Volume | 2.31bn | - | - |
| Nasdaq Volume | 1.64bn | - | - |
Bellwethers
My 9-stock "bellwethers" group fell by an average of 0.90%
- General Electric (GE) -$0.22 (0.64%) to $33.91;
- Citigroup (C) +$0.12 (0.27%) to $45.17;
- Wal Mart (WMT) -$0.82 (1.77%) to $45.39;
- I.B.M. (IBM) -$0.11 (0.13%) to $83.36;
- Intel (INTC) +$0.01 (0.04%) to $23.11;
- Cisco Systems (CSCO) -$0.04 (0.23%) to $17.12;
- eBay (EBAY) -$1.41 (3.58%) to $38.01;
- Fannie Mae (FNM) -$0.35 (0.76%) to $45.91; and
- Freddie Mac (FRE) -$0.81 (1.33%) to $59.93.
Market Breadth & Internals
NYSE declining Issues beat out advancers by 1995 to 1284, for a single-day A/D reading of -711; and Nasdaq losers exceeded gainers by 1747 to 1221. The 10-day moving average of the A/D line fell to -41.1 on the NYSE, while the 10dma of the Nasdaq A/D fell to -18.3.
On the NYSE declining volume was greater than volume in advancing issues by 1407.7 to 883.9 million shares; On the Nasdaq declining volume exceeded volume in advancing issues by 914.5 to 677.2 million shares.
56 NYSE-listed stocks rose to new 52-week highs, and 91 posted fresh 52-week lows, while on the Nasdaq there were 74 stocks that hit new 52-week highs, and 63 which fell to fresh 52-week lows.
| Market Breadth Statistics | ||
| NYSE | Nasdaq | |
| Advancers | 1284 | 1221 |
| Decliners | 1995 | 1747 |
| Advancing Volume (m) | 883.9 | 677.15 |
| Declining Volume (m) | 1407.66 | 914.53 |
| New Highs | 56 | 74 |
| New Lows | 91 | 63 |
| Market Sentiment Statistics | |||
| Index | Close | Gain(Loss) | % |
| CBOE Volatility Index | 14.53 | -0.21 | -1.42% |
| CBOE Nasdaq Volatility Index | 15.28 | 0.05 | 0.33% |
| Equity Put-Call Ratio | 0.63 | 0.05 | 8.62% |
| 10-day PCR | 0.70 | -0.01 | -1.41% |
| SPX-VIX Ratio | 82.3 | 0.98 | 1.21% |
Bond Market Analysis
Bonds fell pretty hard at the long end, with the yield on the benchmark 30-year Treasury bond rising 5.3 bps to 4.713%. The 0-year T-bond future got slugged, closing at 112-14/32; I'm glad that the bond long was closed (early) with a nice gain.
The middle of the yield curve was broadly lower: five year yields rose to 4.379%, and ten-year yields rose to 4.508%.
Spreads between short-dated (2-yr) Treasuries and high-grade corporate bonds of similar maturity profiles were 10.0 bps wider at 19.0 basis points; spreads between longer dated Treasuries and their corporate AAA counterparts fell to 50.0 bps for 10-year AAA, and 70.0 bps for 20-years.
Credit spreads (spreads between corporate bonds of the same maturity profile but different creditworthiness) were mixed with the AAA-A spread on 20-years 27.0 bps wider at 60.0 basis points and the 10-year AAA-A spread unchanged at 6.0 bps.
| Treasury Yields | |||
| Index | Close | Gain(Loss) | % |
| UST 13wk (yld) | 3.837 | 0.072 | 1.91% |
| UST 2Y (yld) | 4.32 | 0.08 | 1.89% |
| UST 5Y (yld) | 4.379 | 0.064 | 1.48% |
| UST 10Y (yld) | 4.508 | 0.062 | 1.39% |
| UST 30Y (yld) | 4.713 | 0.053 | 1.14% |
The Banks Index declined 0.49 points (0.5%), at 97.33; within the index,
- North Fork Bancorp (NFB) -$0.52 (2.08%) to $24.48;
- Regions Financial (RF) -$0.48 (1.46%) to $32.32;
- Fifth Third Bancorp (FITB) -$0.54 (1.4%) to $37.92;
- Mellon Financial (MEL) -$0.43 (1.35%) to $31.45; and
- PNC Financial Services (PNC) -$0.67 (1.13%) to $58.38.
The Broker-dealer Index slid 1.34 points (0.75%), at 178.47; the ticket clippers lined up as follows -
- Legg Mason (LM) -$6.22 (5.67%) to $103.48;
- E*Trade (ET) -$0.32 (1.73%) to $18.17;
- Bear Stearns (BSC) -$1.02 (0.97%) to $104.38;
- Jeffries Group (JEF) -$0.29 (0.69%) to $41.93; and
- Lehman Brothers (LEH) -$0.66 (0.56%) to $116.32.
The Philadelphia SOX (Semiconductor) index dipped 4.65 points (1.04%), to end the session at 442.14
- Texas Instruments (TXN) -$2.37 (7.66%) to $28.55;
- Altera (ALTR) -$1.30 (7.33%) to $16.43;
- National Semiconductors (NSM) -$0.55 (2.37%) to $22.70;
- Linear Technology (LLTC) -$0.80 (2.2%) to $35.50; and
- ST Microelectronic (STM) -$0.20 (1.19%) to $16.61.
Gold & Silver Markets
Gold rose $7.70 (1.65%) to close at $474.70 per ounce. Odd, that... it really needs more of a retracement to set itself up for a sustainable run toward $500.
The Gold Bugs Index advanced 4.34 points (1.92%), to 230.25
- Kinross Gold (KGC) +$0.41 (6.08%) to $7.15;
- Coeur d'Alene (CDE) +$0.18 (4.74%) to $3.98;
- Hecla Mining (HL) +$0.17 (4.56%) to $3.90;
- Iamgold (IAG) +$0.27 (4.16%) to $6.76; and
- Golden Star (GSS) +$0.08 (3.03%) to $2.72.
Silver rose $0.12 (1.52%) to close at $7.83 per ounce.
The Gold and Silver Index (XAU) gained 1.66 points (1.55%), closing at 108.56 points.
- Durban Rooderpoert Deep (DROOY) +$0.09 (6.92%) to $1.39;
- Kinross Gold (KGC) +$0.41 (6.08%) to $7.15;
- Placer Dome (PDG) +$0.48 (3.01%) to $16.45; and
- Meridian Gold (MDG) +$0.52 (2.59%) to $20.62.
| Precious Metals and Indices | |||
| Index | Close | Gain(Loss) | % |
| Gold | 474.70 | 7.70 | 1.65% |
| Silver | 7.83 | 0.12 | 1.52% |
| PHLX Gold and Silver Index | 108.56 | 1.66 | 1.55% |
| AMEX Gold BUGS Index | 230.25 | 4.34 | 1.92% |
Oil Market
Oil was firmer, rising by $2.12 per barrel (after again dipping below $80 in the early part of the session), closing at $62.44 per barrel. If $59.30 is the low of the down-move, then the bull market in Energy is intact and stocks will start a fairly nerve-wracking slide. The only proof that the low is in will be a breakout above $65 - an annoying technical pain in the num.
The Oil and Gas Index (XOI) rose 17.57 points (1.85%), to end the session at 969.82
- ConocoPhillips (COP) +$2.14 (3.55%) to $62.44;
- Occidental Petroleum (OXY) +$2.52 (3.42%) to $76.13; and
- Kerr Mcgee (KMG) +$2.21 (2.64%) to $85.87.
The Oil service stocks (OSX) Index posted a rise of 4.73 points (2.95%), closing at 165.31
- Nabors Industries (NBR) +$3.75 (5.91%) to $67.15;
- BJ Services (BJS) +$1.62 (4.86%) to $34.93; and
- Baker Hughes (BHI) +$2.42 (4.52%) to $55.97.
| Energy Complex | |||
| Index | Close | Gain(Loss) | % |
| Reuters CRB | 337.43 | 6.42 | 1.94% |
| Crude Oil Light Sweet | 62.44 | 2.12 | 3.51% |
| Heating Oil | 1.9326 | 0.09 | 4.63% |
| Natural Gas | 14.338 | 1.33 | 10.26% |
| Unleaded Gas | 1.6997 | 0.07 | 4.1% |
| AMEX Oil Index | 969.82 | 17.57 | 1.85% |
| Oil Service Index | 165.31 | 4.73 | 2.95% |
Currency Markets
| USD Exchange Rates | |||
| Index | Close | Gain(Loss) | % |
| US Dollar Index | 89.23 | -0.88 | -0.98% |
| Euro | 1.2106 | 0.012 | 1% |
| Yen | 115.03 | -0.42 | -0.36% |
| Sterling | 1.7844 | 0.0154 | 0.87% |
| Australian Dollar | 0.7567 | 0.0051 | 0.68% |
| Swiss Franc | 1.2766 | -0.0105 | -0.82% |
| Canadian Dollar | 0.8511 | 0.0081 | 0.96% |
