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Earnings Painting A Prettier Picture?

|Includes: Allegheny Technologies Incorporated (ATI), BB, NKE, ORCL, RTI

The market was in a nervous mood this morning, as jobless claims unexpectedly rose.  In addition, the dollar surged and was pressuring stocks.  Two days ago, we cashed out our gains and went to mostly cash.  Yesterday, in our Trading Room, I cautioned our members after the Fed's statement was released to not to be too bullish, just yet:

December 16, 2009 11:51 AM
market
don't be too giddy... this market is still range-bound... no real direction yet....

December 16, 2009 11:57 AM
dollar
not coming down...

December 16, 2009 12:10 PM
Asian markets
are going through the same thing. they keep trying to break out, but, keep getting pulled back. Hong Kong is now in danger of turning bearish if it doesn't get a string of up-days soon...

Sure enough, the market took a quick dive today.  It is also the options expiration week.  So, volatility is to be expected as many manuevers are happening when fund managers jostle their positions. 

This morning, ATI raised its earnings outlook and saw its shares gain +5.62%.  RTI also benefitted from the news, adding +2.81%.  After the market, RIMM blew the estimates away with its strong sales and earnings outlook.  RIMM shares charged up more than +12% after the news!  ORCL also reported strong sales and beat the estimates.  ORCL shares added +3.89% in after-hours trading.  NKE also delivered a solid report card, sending its shares higher by +2.15% this evening.

The Dow finished down 132.86 points; SPX fell 13.1 points; Nasdaq lost 26.86 points:

Most sectors were down today.  Commodity sectors were weak on the stronger dollar:  GDX (gold miners) -6.24%, XME (metals and mining) -2.37%, OIH (oil services) -0.78%.  USO (oil) fell 1.03% while UNG (natural gas) added +3.98%.  XLF (financials) fell 1.88%.  FXI (Chinese ADRs) lost 2.75%. 

SPX

SPX fell 13.1 points to close at 1096.08.  It closed just below its daily MAs.  The MACD went down.

Nasdaq

Nasdaq lost 26.86 points to close at 2180.05.  It closed at its 20-day MA and the MACD slipped.

The market keeps trying to break out, but, keeps getting pulled back.  The financials are still so weak.  As I have been saying, without the financials, the market will continue to have problems breaking out of the recent trading range.  Nevertheless, some encouraging earnings reports were released after the market today.  Do they paint a prettier picture than what the market showed in its trading today?  Perhaps.  We'll find out soon enough when earnings season kicks off in January.  We should see some buyers coming back in on tonight's earnings.  RIMM and ORCL's reports should help the techs, which are looking more and more to emerge as the new leaders on the market.

Good night and HappyTrading! ™



Disclosure: no positions