Monday morning saw the three major stock indices start the week in negative territory, in the wake of the G-20’s decision to delay the International Monetary Fund’s ability to lend more money to the eurozone. A mid-morning report from the National Association of Realtors on pending home sales brought enough good news to propel the stock indices to the break-even level. Although three of our Miami-based companies watched their stocks decline, Lennar (LEN) had a good day, thanks to the pending home sales report.
The Dow Jones Industrial Average finished the day in the red by less than 2 points. Nevertheless, the Dow crossed the all-important 13,000 level a total of 22 times during Monday’s trading session. The Zero Hedge website covered that story with a great chart. The Dow has not closed above 13,000 since May 19, 2008. As a result, many are looking to that milestone as a sign of economic recovery.
The Market Snapshot at MarketWatch provided this observation about the syndrome exhibited on days such as Monday:
“What we’ve been seeing recently is: European worries have started us down, but then U.S. data comes in surprisingly strong and continues to move people into being less worried about downside risk,” said Bill Stone, chief investment strategist at PNC Wealth Management Group.
The Dow Jones Industrial Average declined by a mere 1.44 points on Monday to close at 12,981 for a loss of 1 basis point (0.01 percent). The S&P 500 advanced by 14 basis points (0.14 percent) to finish at 1,367. The NASDAQ Composite picked up 8 basis points (0.08 percent) to end the day at 2,966.
With the exception of Lennar (LEN), Miami-based corporations had a lousy day on Monday. Lennar (LEN) jumped by 2.50% to close at 22.94. Carnival Cruise Lines (CCL) escaped with the least damage, sinking by only 3 basis points (0.03%) to finish at 29.96. Ryder System (R) declined by 78 basis points (0.78%) to close at 51.91. Royal Caribbean (RCL) sank by 1.13% to end the day at 28.07.
Our “thought for the day” comes from Peter Tchir of TF Market Advisors:
And finally, the market seems completely driven by Apple. At any moment in time, if you know where AAPL is trading, you can get the S&P and NASDAQ pretty accurately. It has replaced the EUR as the thing to watch intraday, or so it seems.
The following companies will be playing “beat the number” on Tuesday, with the release of their quarterly earnings reports: Amedisys (AMED), American Public Education (APEI), Ares Capital (ARCC), Ariad Pharmaceuticals (ARIA), Autozone (AZO), Boise (BZ), Cablevision Systems (CVC), Carrizo Oil & Gas (CRZO), Cerus (CERS), Chart Industries (GTLS), Collective Brands (PSS), Copart (CPRT), CTC Media (CTCM), Dina Shipping (DSX), Domino’s Pizza (DPZ), Dreamworks Animation (DWA), Dycom (DY), Ecolab (ECL), First Energy (FE), Fortress Investment Group (FIG), Fresh Del Monte Produce (FDP), Kodiak Oil & Gas (KOG), Netlist (NLST), NRG Energy, (NRG), Office Depot (ODP), OM Group (OMG), Progressive Group (PGR), Responsys (MKTG), Sanderson Farms (SAFM), Stec (STEC), Tenet Healthcare (THC) and Vitamin Shoppe (VSI). Good luck!