Ongoing Correction Thins Ranks Of Big Cap 20 and Some ETFs Defy Jan.’s Market Dive
Only 14 stocks met the standard for eligibility this week, down from the usual 20 and below last week’s total of 17.
During the past week, some changes at the top of the Big Cap 20 have come amid better-than-expected quarterly earnings reports.
Aerospace giant Boeing (BA) on Wednesday reported a Q4 profit of $1.77 a share, crushing views by 41 cents. Sales grew 42% to $17.9 billion, above forecasts.
Virtualization software firm VMware’s (VMW) Q4 EPS fell 14% to 31 cents excluding items, but that topped estimates by a nickel. Revenue rose 18% to $608 million, beating views.
WellPoint (WLP) posted a quarterly profit of $1.16 a share excluding items, 14 cents over forecasts. But operating revenue was below estimates.
On the downside, the health insurer’s pretax margins have fallen for four years in a row. Plus the health care overhaul puts a big question mark over the sector. [Read the full article]
Dow Jones-UBS Sugar Subindex Total Return ETN (SGG) rose 11.12% in January. The fund soared to an all-time high as sugar prices climbed to a 29-year peak at the end of January and doubled in the past year. The S&P GSCI commodity index, meanwhile, fell 6.51% last month.
The exchange traded note, tracking prices of sugar futures, broke out of a 15-week base with a 74.18 buy point in mid-December. It closed Monday 11% past its buy point. It carries 87 Relative Strength and A- Accumulation/Distribution Ratings; the best combinations among commodity exchange traded products.
With world demand expected to hit 167.13 million tons this year, global sugar production is projected to fall short by 7.25 million tons, according to the International Sugar Organization, based in London. Poor weather conditions hurt production in Brazil and India, the world’s largest producers. India’s sugar producers expect prices to remain strong this year. [Read the full article]
Indexes were up on strong housing data. The market’s two-day streak was the best in nearly three months. On Tuesday, the Dow gained 1.1%, the Nasdaq 0.9%, the S&P 500 and the NYSE composite 1.3%. Volume rose across the board.
Today’s after-market action included VeriSign (VRSN). The Internet infrastructure company said Q4 earnings were 48 cents a share. That’s up from a loss of 50 cents a share a year ago and above analysts’ estimates of 34 cents.
On deck for Wednesday are several economic reports, including the Challenger jobs data and ADP employment change. The consensus forecast for the ADP report is a loss of 60,000.
Also tomorrow is the ISM service-sector index and crude inventories. The forecast for the ISM index is 51.
4:15 p.m. Update: Stocks finished higher Tuesday for the second straight day, this time in higher volume.
One of the top stocks of the day was Pegasystems (PEGA). The maker of business management software jumped 5% in double its usual volume. [Read the full article]