futures rebounded pre-open following a better than expected Q4 GDP
number and a better than expected CVX (0.1%) earnings report. The major
indexes opened slightly higher, however, indexes dropped into negative
territory just before 10ET, on the release of a lower than expected Jan
Univ of Mich consumer confidence number of 61.2 vs. consensus 61.9, and
ended the week lower. Safe haven assets, gold in particular,
outperformed. Spot gold was +$19.25 to $927.90/oz. Gold pared gains
following the consumer confidence number, and then rebounded. WTI crude
for March closed +$0.19 to $41.63.
Treasuries were little changed, following a selloff in the long end of
the curve; the 2-yr. and 10-yr. were unchanged. Airlines, cyclicals,
networkers, and consumer staples were among the worst performing sectors
today. Gold and energy stocks outperformed.
Breadth was negative: Decliners outnumber advancers by 2.7:1 on the NYSE
and by 2:1 on the Nasdaq. 1.51B shares traded on the NYSE.
Economic data: S&P futures rallied following the GDP report, indexes
traded lower following the Univ. of Mich number. A build-up in inventory
was attributed to better than expected GDP number, likely a result of
companies' failure to cut production on pace with falling demand. Q4
GDP reported (3.8%) vs. consensus (5.5%); Personal Consumption (3.5%)
vs. consensus (3.5%) Prior readings were (0.5%) and (3.8%),
respectively. GDP Price Index (0.1%) vs. consensus 0.4%; core PCE 0.6%
vs. consensus 1.0%. Prior readings were 3.9% and 2.4%, respectively.
Q4 Employment Cost Index 0.5% vs. consensus 0.7% Prior reading was 0.7%.
Jan Chicago Purchasing Manager's Index 33.3 vs. consensus 34.9 Jan Univ
of Michigan reported 61.2 vs. consensus 61.9. Prior reading was 61.9.
Procter & Gamble (PG - 6.4%) reported on lower end of guidance range and
lowers EPS f09 guidance. The IXR (3.3%) index lagged the major indexes.
Safeway (SWY - 6.6%), and Kroger (KR - 6.8%) lagged within the IXR.
Juniper (JNPR - 16.6%) weighed on networkers after reporting in line
with consenus and guiding Q1 below expectations. Cisco (CSCO - 6.0%),
among others, was lower in sympathy. The Amex networking index was down
(5.0%).
Amazon (AMZN +17.6%) reported Q4 EPS $0.52 vs. Reuters $0.39 and
provided better than expected Q1 guidance. The report failed to provide
support to the broader retail sector.
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