Pre-opening Comments for Wednesday January 30th
U.S. equity index futures are lower this morning prior to news from the FOMC meeting this afternoon. S&P 500 futures are down 3 points in pre-opening trade. Futures were helped in early trading by stronger than consensus quarterly earnings from Boeing, Amazon.com and Northrop Grumman. However, futures quickly lost ground on release of economic news.
The January ADP Employment Report released at 8:15 AM EST slipped to 192,000 from 215,000 in December. However, the report exceeded consensus at 175,000.
Consensus for first estimate of real fourth quarter Gross Domestic Product was growth at 1.0% versus 3.1% in the third quarter. Actual was a decline of 0.1%.
Viacom added $0.31 to $59.07 after Cowen upgraded the stock from Neutral to Outperform.
Canadian Pacific (CP $116.20) is expected to open lower after Stiffel Nicolaus downgraded the stock from Buy to Hold.
Yum Brands fell $0.74 to $63.50 after Bernstein downgraded the stock from Outperform to Market Perform.
Ford fell $0.08 to $13.06 after CLSA downgraded the stock from Outperform to Under Perform. In addition, Craig Hallum downgraded the stock from Buy to Hold.
Harley Davidson dropped $0.50 to $54.02 after Goldman Sachs downgraded the stock from Buy to Neutral.
Weakness in the U.S. Dollar is having a positive impact on commodity prices.
The CRB Index moved to a three month high.
Strength in the CRB Index was led by higher base metal, precious metal and energy prices.
Palladium broke to an 18 month high. ‘Tis the season!
The Gasoline ETN broke to a five year high.
Higher gasoline prices triggered strength in crude oil prices.
The Philadelphia Oil Services Index broke to a 10 month high. ‘Tis the season!
The S&P Energy Index broke to an 18 month high. ‘Tis the season!
U.S. Treasuries remain under price pressure prior to results from the FOMC meeting today.. The long term Treasury bond ETF broke support at $117.06 and established an intermediate downtrend.
Thackray’s 2013 Investment Guide
Thackray’s 2013 Investor’s Guide is here. Order through www.alphamountain.com , Amazon, Chapters or Books on Business.
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Energy Sector Seasonal Chart
Disclaimer: Comments and opinions offered in this report at www.timingthemarket.ca are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.
Don and Jon Vialoux are research analysts for Horizons Investment Management Inc. All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons Investment Management Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons Investment Management Inc
Horizons Seasonal Rotation ETF HAC January 29th 2013