The market review for February 19

Thursday, February 18, trades on the American stock market began a small gepom down by weak data out of macroeconomic statistics on the labor market and lower-than-expected increase in the index of leading indicators. Last January he added, only 0,3%, while experts predicted an increase of 0,5% after the December increase of 1,1%. With regard to labor market data, the number of initial applications for unemployment insurance for the past week unexpectedly rose to 473 thousand, moreover, that analysts do not expect changes from the previous figure of 440 thousand In addition, 1.4% up in January, the index of production prices, nearly doubling the forecasts.

However, investors are quickly subdued with a fresh portion of the weak statistic data and renewed buying. Strengthened the belief in more or less stable growth of the economy published by the Reuters poll of economists that the U.S. housing market has already passed the peak of the crisis, as well as Philadelphia business activity index for February, rose to 17.6 points instead of the expected 17 points. Manufacturers region replenish stocks in anticipation of possible increases in the level of production. In addition, the U.S. president Barack Obama on Thursday signed an order to establish unilaterally a bipartisan commission to tackle the budget deficit. Barack Obama said that while legislators do not forget about party differences, a tendency to increase the budget deficit will not allow the economy to show steady recovery.

As a result of trading on February 18 2010. Dow Jones index rose 83.66 points (0.81%) – up to 10,392.9 points, NASDAQ rose by 15.42 points (0.69%) – up to 2,241.71 points, S & P added 7.24 points (0.66%) and amounted to 1,106.75 points.

Among the retailers most negative dynamics showed Wal-Mart Stores Inc., Lost by the end of the day 1,09% of capitalization. Largest retailer in the world reported on the receipt of net profit in the IV quarter of 2009. of $ 1.21 per share and revenue growth to 112.8 billion dollars, analysts expect earnings will amount to at least 114.36 billion U.S. sales network has decreased by 1,6% (in the company forecast a decline of 1% ) because of falling prices for consumer goods and electronics. For the current quarter, Wal-Mart believes that it will become even more difficult for the company. Other network traded in different directions. Lost in the price of paper Costco Wholesale Corp. (-0.15%). Growth has been completed the day Target Corp. (+0,28%), Lowe’s Companies Inc. (+0,43%), The Home Depot Inc. (+0,93%), Kroger Co. (1.24%) and Abercrombie & Fitch Co. (0.88%).

Sure looked on Thursday manufacturers of computers, after Hewlett-Packard Co. (HP) on the results of I quarter of this fiscal year (profit of 96 cents per share) revised annual profit forecast upwards – from 4,25-4,35 to 4,37-4,44 per share and increased by 3 % estimate of annual profits. Greatest contribution to the success of HP in I quarter have grown by 41% sales in countries BRIC (Brazil, Russia, India and China). At the end of the day the company’s stock went up by 1.38%, its rival Dell Inc. – On 2,26%, IBM Corp. – On 1,17%.

At the same time, manufacturers of semiconductors are not in demand. One of the largest global players in this sector Applied Materials Inc. reported on Thursday about getting in the I quarter of the current fiscal year net profit of 6 cents per share. It is much better than the loss of 10 cents, suffered a year earlier, but analysts still expect to see a bit more profit – at 7 cents. Against this backdrop, RBC Capital Markets lowered the target price of shares of Applied Materials from 14 to 12 dollars per share, that is, to a level below the current. By the end of the trading securities of the company have fallen in price on 2,39%, Advanced Micro Devices Inc. – 1%, Intel Corp. only at the end of the day chose plus on 0,87%.

The second-largest U.S. drugstore chain Walgreen Co. announced the purchase of network pharmacies Duane Reade Holdings Inc. for 1.1 billion dollars, taking into account debt. Thus, the network will expand by 4% from the current 7100 pharmacies, with the number of its offices in New York will grow by 131% from the current 70. Actually, this was dictated by the need to absorb, because organic growth up to 257 pharmacies offices in New York would require considerable time investment. Capitalization Walgreen Feb. 18 rose by 1.46%, leader of the pharmaceutical segment of the U.S. CVS Caremark Corp. – On 0,38%, the third the number of offices line Rite Aid Corp. – At 10.79%. American analysts are thinking that Rite Aid may also be acquired Walgreen, Rite Aid management but these assumptions are not commented.

The banking sector on Thursday did not disappoint the market “bulls”. Optimism players added the report of the second French bank Societe Generale. In IV quarter of 2009. he received 221 million euro net profit, which exceeded the expectations of market participants, counted on 148 million euros. In 2010. Bank management expects further improvement in financial results. News was the reason for buying shares of JP Morgan Chase & Co. (+0,92%), Bank of America Corp. (+1,4%), Wells Fargo & Co. (+0,04%), Citigroup Inc. (+0,59%), US Bancorp (+0,76%) and PNC Financial Services Group Inc. (0.04%).

The closeness of the value of gold to the maximum levels in February allowed one of the oldest gold-mining companies in the world Newmont Mining Corp. increase the capitalization of 2.48%. Others, too, mostly steelworkers becoming more expensive, despite the fall in prices for industrial metals. Papers of Freeport-McMoRan Copper & Gold Inc. risen in price by 1,97%, Southern Copper Corp. – On 1,68%, AK Steel Holding Corp. – On 0,48%, United States Steel Corp. – On 0,22%, Alcoa Inc. – On 0,07%.

On Thursday, the U.S. market still sold on the eve of missed opportunities – up to the day the Dow Jones successfully overcame the maximum level of February – 10320 points. The indicator rose a third day in a row, and the upward trend observed since the beginning of the week. Quotations securities look a little overheated. It should be noted that on 18 February was the Dow index reached the level of resistance to the Fibonacci 61.8% of the reduction wave of 2010., So the mark of 10390 items, it would be logical to see a downward spiral, at least rehabilitative.

’s largest maker of thin-film solar power modules reiterated its prior 2010 sales and profit forecasts, disappointing investors who had expected an increase.

Intuit Inc. (INTU:US): The world’s biggest maker of tax- preparation software reported second-quarter profit that beat analysts’ estimates as U.S. taxpayers began filing returns and more small companies bought finance software.

Nanometrics Inc. (NANO:US): The semiconductor-gear maker reported fourth-quarter revenue of $26.3 million, missing the average analyst estimate of $27.9 million.

Key earnings/guidance since yesterday’s close:
-Dell (DELL) beat by a penny in Q4 (Jan) on much better-than-expected revenue of $14.9 bln (First Call consensus $13.9 bln) but much weaker-than-expected margins. They were pressured by seasonal strength in consumer demand, which has lower margins, and higher costs in components. The company said it saw demand in the commercial business continue to return in the quarter and is “cautiously optimistic” that this trend will continue into FY11. On the conference call it said it sees revenue down sequentially in Q1 (consensus $13.5 bln), with the revenue mix becoming more balanced through the fiscal year. Shares of DELL are 5.5% lower premarket.

Technical Perspective: The market had become extended in the wake of the recent breakout — Russell 2000 up seven in a row, Nasdaq five in a row, Dow/S&P 500 three in a row — with the S&P probing resistance at its 50-day sma. Despite the extensive run, there were no short-term signs of developing pressure at the close. The Fed discount rate hike after hours has, however, resulted in a sizeable retreat, with futures currently erasing much of Thursday’s gains. An initial congestion support for the S&P is in the 1101/1100 area, followed by 1097/1096 (50-day ema/congestion). How the market responds after the anticipated early weakness will provide an indication of the underlying strength of the decline. The 38% retracement of the second leg higher (off the Feb. 12 low) comes in at 1090.

CALENDARS
Key economic data:
-January CPI m/m (consensus 0.3%; revised prior 0.2%) and y/y (consensus 2.8%; prior 2.7%) at 8:30 a.m. ET
-January core CPI, which excludes food and energy, m/m (consensus 0.1%; prior 0.1%) and y/y (consensus 1.8%; prior 1.8%) at 8:30 a.m. ET

Federal Reserve/Treasury:
-New York President Dudley speaks at 8:00 a.m. ET

Key Note/Bond auction results:
-None

Key industry conferences:
-Consumer Analyst Group of New York (CAGNY) Conference (Day 5 of 5) — Companies presenting: ENR, DF, AVP, KO, CLX

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

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