USRant for Monday Feb 8 2010

Well would ya lookit that… US markets down on a Monday: looks like quant algos are now selling anything that moves, since volume accelerates on downmoves.

The nearest support (basis the S&P500 is down around 1005 – fully 50 points below current levels: if that breaks and 1000 is breached by more than a couple of points, the impact on US sentiment will be dire… Yanks are not a people with any psychological resilience whatsoever (witness how easily they are scared witless by fake Osama videos).

Still, any test of 1000 is likely to take several days to unfold. It would require yet more bad news on the sovereign debt problem in the STUPIDs – and CDS levels on STUPID debt have already exploded so far that the ratings agencies have already been forced to take their usual "So late you get nodded into the wrong side" action… which in turn means that, in the event that the tax-parasite classes in Europe come up with a plan (even a fake one designed to funtion like a tech-stock announcement in 2000) the short-term snapback will be a sight to behold.

The only economic data released during the session was trivial (as far as its impact on markets is concerned) – just Housing Starts for Canada; the series posted a reading of 186.3K rising 10.2k from the prior reading of 176.1K – above the consensus estimate of 180.0K.

Headline Indices

The Dow Jones Industrial Average lost 103.84 points (1.04%) to 9908.39 points. The index high for the day was 10028.56, while the low was 9905.45.

Total volume traded in the 30 components of the index was 963.03m shares. Decliners outpaced gainers by 13.5 to one, with 27 decliners to 2 advancers. Declining volume was greater than advancing volume by 922.79m to 40.24m shares. The main decliners (in percentage terms) were -

• Bank Of America (BAC) -0.52 (3.5%) to $14.48 on volume of 204.26m shares;
• American Express (AXP) -1.06 (2.8%) to $36.79 on volume of 8.33m shares;
• Citigroup (C) -0.07 (2.2%) to $3.15 on volume of 250.02m shares;
• Caterpillar (CAT) -0.97 (1.9%) to $50.78 on volume of 8.62m shares; and
• United Technologies (UTX) -1.1 (1.7%) to $65.4 on volume of 5.03m shares.

The S&P500 Index lost 9.45 points (0.89%) to 1056.74 points..

Total volume traded in the 500 components of the index was 3.17bn shares. Decliners outpaced gainers by 4 to one, with 373 decliners to 93 advancers. Declining volume was greater than advancing volume by 2.41bn to 724.13m shares. The main decliners (in percentage terms) were -

• Electronic Data Systems (EDS) -0.5601 (6.4%) to $8.25 on volume of 0.03m shares;
• MGIC Investment (MTG) -0.31 (4.9%) to $5.98 on volume of 2.69m shares;
• Eastman Kodak (EK) -0.24 (3.9%) to $5.84 on volume of 14.22m shares;
• Newmont Mining Corp. (Hldg. Co.) (NEM) -1.82 (3.9%) to $44.41 on volume of 9.63m shares; and
• Massey Energy Company (MEE) -1.45 (3.7%) to $38.26 on volume of 3.91m shares.

The Nasdaq Composite slid 15.07 points (0.7%) to 2126.05 points. while the Nasdaq100 dipped 11.24 points (0.64%) to 1734.88 points..

Total volume traded in the 100 components of the index was 537.53m shares. Decliners outpaced gainers by 2.4 to one, with 66 decliners to 27 advancers. Declining volume was greater than advancing volume by 432.53m to 91.92m shares. The main decliners (in percentage terms) were -

• Focus Media Holding (FMCN) -0.62 (4.5%) to $13.1 on volume of 1.1m shares;
• Sirius Satellite Radio (SIRI) -0.0247 (2.9%) to $0.8353 on volume of 65.33m shares;
• Cadence Design Systems (CDNS) -0.13 (2.3%) to $5.6 on volume of 2.9m shares;
• Adobe Systems (ADBE) -0.72 (2.2%) to $32.05 on volume of 8.42m shares; and
• Liberty Media (LINTA) -0.23 (2.1%) to $10.5 on volume of 1.55m shares.

Volatility

The CBOE Volatility Index rose +0.42 points (1.61%) to 26.53 points. and the CBOE Nasdaq100 Volatility Index added +1.01 points (3.89%) to 26.97 points..

Breadth and Internals

A total of 3816 issues traded today on the NYSE; today's total volume was 2.81bn shares. A total of 1898 stocks posted gains for the day, and volume in advancing issues totalled 1.19bn shares. Exerting downwards pressure on the index were 1830 losers, which accounted for a total declining volume of 1.57bn shares. 47 stocks made new 1-year highs on the NYSE, while 34 shares plumbed new 52-week depths.

On the Nasdaq 2696 tickers traded today; total Nasdaq volume was 0.71bn shares. A total of 1230 stocks posted gains for the day, with aggregate volume of 0.38bn shares changing hands in the day's winners. The red zone of the Nasdaq exchange comprised 1356 losers, and total declining volume was 0.32bn shares. 21 Nasdaq-listed stocks hit new 52-week highs, while 23 shares dipped to new 1-year lows.

Dow Darlings

• Home Depot (HD) +0.61 (2.2%) to $28.59 on volume of 24.7m units
• Hewlett-Packard (HPQ) +0.27 (0.6%) to $47.59 on volume of 15.6m units

Dow Duds:

• Bank Of America (BAC) -0.52 (3.5%) to $14.48 on volume of 204.3m units
• American Express (AXP) -1.06 (2.8%) to $36.79 on volume of 8.3m units
• Caterpillar (CAT) -0.97 (1.9%) to $50.78 on volume of 8.6m units
• United Technologies (UTX) -1.1 (1.7%) to $65.4 on volume of 5m units
• Du Pont (DD) -0.54 (1.6%) to $32.19 on volume of 5m units

Most Traded Dow stocks:

• Bank Of America (BAC)-0.52 (3.5%) to $14.48 on volume of 204.3m units
• General Electric (GE)-0.19 (1.2%) to $15.6 on volume of 67.3m units
• JPMorganChase (JPM)-0.6 (1.6%) to $37.7 on volume of 55.8m units
• Pfizer (PFE)-0.12 (0.7%) to $17.84 on volume of 55.2m units
• Alcoa (AA)-0.12 (0.9%) to $13.06 on volume of 36.4m units

Precious Metals

Precious metals futures performed as follows -

The Gold Bugs index (XAU) declined 4.91 points (3.18%) to 149.34 points. Total volume traded in the 16 components of the index was 99.82m shares. None of the 16 index components rose today: 16 stocks within the index fell, with downside volume of 99.82m shares. The main decliners (in percentage terms) were -

• Coeur d'Alene (CDE) -1.27 (8.6%) to $13.55 on volume of 4.08m shares;
• Pan-American Silver (PAAS) -1.24 (5.6%) to $20.74 on volume of 1.21m shares;
• Silver Wheaton (SLW) -0.7 (4.9%) to $13.58 on volume of 6.75m shares;
• Silver Stand Resources (SSRI) -0.83 (4.6%) to $17.27 on volume of 0.51m shares; and
• Yamana Gold (AUY) -0.45 (4.3%) to $10.01 on volume of 12.72m shares.

Energy Complex

Energy futures performed as follows -

The Oil Services index (OSX) dropped 1.75 points (0.92%) to 187.98 points. Total volume traded in the 15 components of the index was 73.15m shares. Decliners outpaced gainers by 6.5 to one, with 13 decliners to 2 advancers. Declining volume was greater than advancing volume by 65.03m to 8.12m shares. The main decliners (in percentage terms) were -

• Nabors Industries (NBR) -0.63 (2.8%) to $21.53 on volume of 6.41m shares;
• Global Industries (GLBL) -0.13 (2%) to $6.38 on volume of 0.4m shares;
• Noble Corp (NE) -0.79 (2%) to $38.94 on volume of 2.91m shares;
• National Oilwell Varco (NOV) -0.77 (1.8%) to $41.53 on volume of 5.55m shares; and
• Rowan Co (RDC) -0.37 (1.7%) to $21.56 on volume of 2.1m shares.

Currency Futures

Currency futures performed as follows -

Bellwethers

The nine-stock group that makes up the Rant bellwethers declined on average by 0.5%. The fallout occurred as follows:

• General Electric (GE) -0.19 (1.2%) to $15.60 on volume of 67.27m units.
• Citigroup (C) -0.07 (2.17%) to $3.15 on volume of 250.02m units.
• Wal-Mart (WMT) -0.52 (0.97%) to $52.93 on volume of 9.44m units.
• IBM (IBM) -1.09 (0.89%) to $121.88 on volume of 5.2m units.
• Intel (INTC) -0.12 (0.62%) to $19.35 on volume of 35.53m units.
• Cisco Systems (CSCO) -0.201 (0.85%) to $23.499 on volume of 65.88m units.
• Google (GOOG) +2.18 (0.41%) to $533.47 on volume of 1.28m units.
• Fannie Mae (FNM) +0.02 (2.06%) to $0.99 on volume of 7.43m units.
• Freddie Mac (FRE) -0 (0%) to $1.16 on volume of 6.25m units.

Other Indices of Interest…

The Banks index (BKX) declined 0.65 points (1.45%) to 44.15 points. Total volume traded in the 24 components of the index was 701.95m shares. Decliners outpaced gainers by 6 to one, with 18 decliners to 3 advancers. Declining volume was greater than advancing volume by 641.27m to 55.61m shares. The main decliners (in percentage terms) were -

• Wells Fargo (WFC) -0.99 (3.6%) to $26.43 on volume of 40.01m shares;
• Bank Of America (BAC) -0.52 (3.5%) to $14.48 on volume of 204.26m shares;
• Citigroup Inc (C) -0.07 (2.2%) to $3.15 on volume of 250.02m shares;
• Capital One Financial (COF) -0.73 (2.1%) to $34.63 on volume of 4.43m shares; and
• PNC Financial (PNC) -1.04 (2%) to $50.75 on volume of 6.14m shares.

The Semiconductor index (SOX) was unchanged at 0 points. Total volume traded in the 18 components of the index was 159.17m shares. Decliners outpaced gainers by 1.5 to one, with 9 decliners to 6 advancers; however advancing volume exceeded declining volume by 82.87m shares to 67.68m. The index's rather boring situation arose as a result of a mixed bag of results, the most notable amongst these (in percentage terms) being -

• Micron Technology (MU) +0.21 (2.4%) to $8.91 on volume of 12.4m shares;
• Broadcom (BRCM) -0.591 (2%) to $28.8 on volume of 5.97m shares;
• ST Microelectronic (STM) -0.11 (1.4%) to $8 on volume of 2.63m shares;
• Applied Materials (AMAT) -0.16 (1.3%) to $12.07 on volume of 7.77m shares; and
• Sandisk (SNDK) +0.28 (1.1%) to $26.37 on volume of 3.34m shares.

The ChildKiller ("Defence") index (DFX) slid 4.23 points (1.32%) to 316.47 points. Total volume traded in the 17 components of the index was 95.47m shares. Decliners outpaced gainers by 7 to one, with 14 decliners to 2 advancers. Declining volume was greater than advancing volume by 92.53m to 2.94m shares. The main decliners (in percentage terms) were -

• Gencorp (GY) -0.42 (9.3%) to $4.09 on volume of 2.15m shares;
• Esterline Tech (ESL) -0.89 (2.3%) to $37.71 on volume of 0.17m shares;
• ITT Corporation (ITT) -1 (2.1%) to $47.51 on volume of 1.87m shares;
• United Technologies (UTX) -1.1 (1.7%) to $65.4 on volume of 5.03m shares; and
• Lockheed Martin (LMT) -1.19 (1.6%) to $74.53 on volume of 4.14m shares.