The market review for December, 4st

Stock trades in the U.S. ended 3 December 2009. decrease in leading indexes. The worst predictions were some macroeconomic statistics, released both before and after the start of the trading session. So, not met the expectations of performance index of business activity in the services sector. According to the Institute for Supply Management, in November, the index fell by 1.9 points compared with the October value and amounted to 48,7 points. This was much worse than forecasts of analysts, who expected that the index will grow to 52 points, and brought fears that the economic recovery has slowed down.

There was more optimistic message of the Ministry of Labor (US Department of Labor), under which the rate of labor productivity in the United States in non-agricultural sectors in the III quarter of 2009., On the final data, seasonally adjusted rose by 8,1% compared with the previous quarter. Analysts expect that growth will be more significant (8.6%). At the same time better than analysts’ forecasts was the report of the U.S. Department of Commerce (US Department of Commerce) to reduce the number of initial applications for unemployment insurance during the week of 5 thousand – up to 457 thousand, analysts expect this figure will be 485 thousand

In the Losers were companies in the financial sector. At 3,5% down quotes from a U.S. bank Wells Fargo, shares of JPMorgan Chase & Co. fell 1.3%, and Citigroup – by 1,2%. At the same time, with investors optimistic about the statement of the largest U.S. bank by assets Bank of America Corp. the intention in the coming days to return the state $ 45 billion, borrowed earlier as the crisis center. Against this backdrop, the bank’s shares went up by 0,7%.

At 0,4% cheaper securities multi-industrial group General Electric Co. U.S. cable company Comcast announced a definitive agreement with GE on a joint venture (JV), which will combine the assets of media companies NBC Universal, owned by GE, and media assets Comcast. Thus 51% of the joint venture will be owned by Comcast, 49% – GE. Comcast shares on the background of this news went up by 6,5%.

At 7,6% jumped quotes Collective Brands. The reason provided the financial report of the American retailer of clothing and footwear, significantly surpassed analysts’ forecasts.

In the red zone of the trading session ended for the American energy companies. Thus, at 1% cheaper shares of the world’s largest oil company, ExxonMobil, and the quotation of its smaller rivals ConocoPhillips and Chevron declined by 1,3% and 1% respectively. Not quite optimistic financial report caused the decline of American quotations developer Toll Brothers to 7,5%.

Dow Jones index dropped by 86.53 points (-0.83%) – to 10,366.15 points

Nasdaq – on 11,89 points (-0.54%) – to 2,173.14 points

S&P — decreased by 9.32 points (-0.84%) – up to 1,099.92 points.

Key earnings/guidance since yesterday’s close:
-Marvell (MRVL) beat by $0.08, ex items, in its fiscal third quarter (Oct) on better-than-expected revenue of $803.1 mln (First Call consensus $770 mln) and non-GAAP gross margin of 57.8% (consensus 55.2%). On the call management provided fourth quarter guidance that was well above expectations, seeing EPS of $0.33-$0.39 (consensus $0.27), revenue of $820-$850 mln (consensus $779.6 mln) and gross margin of 58.5% +/- 50 bps (consensus 55.1%). Shares of MRVL are up 8% premarket.

Technical Perspective:

The employment data will obviously set the stage for the day, but the sizeable retreat after setting a new high out of a range (similar to previous patterns) raises potential for further corrective trade. The S&P will need to clear the 1106 and 1108 levels over the short term to neutralize a potential negative pattern or it remains positioned for further downticks. Resistance above is at 1111/1112 in front of the high (1117). Initial supports below are at 1095/1094 (20 day/congestion) and the 1090/1089 area, with the weekly low and three-week range floor at 1086/1083.

Key economic data:
-November change in Nonfarm Payrolls at 8:30ET (consensus -125K; prior -190K)
-November Unemployment Rate at 8:30ET (consensus 10.2%; prior 10.2%)
-October Factory Orders at 10:00ET (consensus 0.0%; prior 0.9%)

Federal Reserve/Treasury calendar:
-Philadelphia President Plosser speaks on policy lessons from the economic and financial crisis at 10:00ET
-St. Louis President Bullard speaks as part of a panel on the same topic at 13:15ET

Key Note/Bond auction results:
-None

Earnings:
-No companies are confirmed to report today after the close

Key industry conferences:
-None

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• six display
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• http://nyse-trade.com/thinkorswim/

Similar articles:

• The market review for November, 9st
• The market review for November, 2st
• The market review for October, 22st
• The market review for October, 20st
• The market review for October, 8st

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