The market review for October, 28st

Stock trades in the U.S. closed 27 October 2009. countervailing movement of the leading indexes. Without much optimism, investors viewed the report of the research organization Conference Board, according to which the index of consumer confidence in the country up to October fell by 5.7 points — to 47.7 points, while analysts predict its growth to 54 points. Against this background, on the basis of trading on Tuesday markedly cheaper shares of companies whose profitability depends substantially on the state of the U.S. economy. In particular, the 3,5% fall in shares of the largest U.S. aluminum producer Alcoa Inc., And securities Hewlett-Packard Co. fell 1.2%.

Against the background of depressing financial report on 7,8% in the bidding fell quotes one of the leading steel companies in the U.S. USSteel. According to published on the eve of the data, the net loss United States Steel in the III quarter of 2009. amounted to $ 303 million against profit a year earlier, while sales of the company over the past quarter has decreased in 2,6 times — from 7.3 billion to 2.8 billion dollars with the unfavorable financial reports at 4,8% and 4,3 %, respectively, on the basis of trades cheaper shares the world’s largest manufacturer of automobile parts Johnson Controls Inc. and securities of the USA’s largest independent oil refining company Valero Energy Corp.

At the same time, other corporate news was more optimistic. For example, managed to consolidate its position to one of the leading providers of IT-solutions and computer manufacturers, IBM, the board of directors approved a share buy back program at the company’s $ 5 billion Quotations IBM grew up bidding on 0,5%. Moreover, against the backdrop of increasing analysts from Goldman Sachs Group Inc. forecast value of the shares of the largest U.S. network operator credit cards American Express Co. its securities on the basis of trades went up by 3,1%, while shares of its competitor Visa Inc. rose to 1,5%. 2% increase in prices on shares of telecommunications company Verizon Communications Inc.

Against the backdrop of rising oil prices have risen in price by bidding up shares of the world’s largest oil company ExxonMobil Corp. ee and a smaller rival Chevron Corp. — By 2,3% and 1,5% respectively.

Dow Jones index rose by 14.21 points (0.14%) — up to 9,882.17 points
NASDAQ fell 25.76 points (-1.2%) — up to 2,116.09 points
S&P — at 3.54 points (-0.33%) — up to 1,063.41 points.

Sector :

Industry :

Key earnings/guidance since yesterday’s close:
-SAP (SAP) beat by 0.02 euros in the third quarter, but on modestly weaker-than-expected revenue of 2.5 bln euros (First Call consensus 2.6 bln euros). While the company reaffirmed its 2009 non-GAAP operating margin guidance of 25%-27%, it no assumes that non-GAAP software and software-related service revenues will decline in a range of 6%-8%. Shares of SAP are down nearly 8% premarket.
-Visa (V) beat by $0.02 in the third quarter, ex items, on modestly better-than-expected revenue of $1.9 bln (consensus $1.8 bln). The company reaffirmed its financial outlook for 2010, seeing net revenue growth at the lower end of its long-term range of 11%-15% and EPS growth of 20%+. On the call, it reported improvements in payment volumes and transactions processed in September and October, and raised its 2010 operating margin guidance to the mid-50% range from the low 50% range. Separately, the company authorized a $1 bln share repurchase program. Shares of V are up nearly 2% premarket.

Technical Perspective: The S&P 500 fell for a third session in a row yesterday, creating an oversold posture based on short indicators. And while the downside momentum did slow, once again little interest was seen despite the hold near the gap top/50% retrace of the October run support (1060). There is a secondary level of note just below at 1058 which marks the bottom of the gap and the March-July trendline, with the 62% retrace and the 50-day sma at 1051/1049. Given the run back near supports of importance in conjunction with high TRIN closes (above 2.0 Friday/Monday) and the approach of month end, we would be watching to see if signs of a potential near term recovery can develop.

CALENDARS
Key economic data:
-September Durable Goods Orders (consensus 1.0%; revised prior -2.6%) and Orders ex-transportation (consensus 0.7%; revised prior -0.3%) at 8:30ET
-September New Home Sales at 10:00ET (consensus 440K; prior 429K)

Federal Reserve/Treasury calendar:
-None

Key Note/Bond auction results:
-$41 bln in 5-year Notes at 13:00ET

Earnings:
-111 companies are confirmed to report today after the close, though none are expected to be market-moving releases

Key industry conferences:
-None

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