2013-11-02 Weekend Market Update (Is a Weak October Jobs Report Coming?)
Weekend Market Update
Is a Weak October Jobs Report Coming?
Equities finished mixed this week, led by the Dow Jones Industrial Average’s (DJIA) 0.29% gain. The Nasdaq 100 (NDX) fell 0.12% and the S&P 500 (SPX) picked up 0.11%. However, one warning sign was the Russell 2000 Small Cap Index (RUT) dropping 2.03%. Volatility (VIX) was once again virtually nonexistent with the spot Volatility Index remaining in the 13-14 range for the second straight week.
Unlike in the past few weeks, there wasn’t a similar trend amongst the major S&P sectors. Consumer Staples (XLP) were the top performing sector, rising 1.17% for the week. On Monday, there was a buyer of 6k+ Pepsi (PEP) Dec. $90 calls for $0.12-$0.13 each. Materials (XLB) were the worst weekly performer, falling 1.29%. Shares of Monsanto (MON), the largest weighting in the ETF, lost 2.64%.
On Monday morning, we’ll get caught up on factory orders from both August and September. More importantly the October jobs report is released on Friday and Q3 GDP is due out on Thursday. Major earnings results from the likes of Michael Kors (KORS), CBS (CBS), and QUALCOMM (QCOM) will be released too.
Economic Data (11/04-11/08)
Monday: 10:00 A.M.- Aug. Factory Orders (+0.3%), Sep. Factory Orders (+1.8%)
Tuesday: 10:00 A.M.- Oct. ISM Services (54.0)
Wednesday: 7:00 A.M.- MBA Mortgage Index; 10:00 A.M.- Sep. Leading Indicators (+0.6%)
Thursday: 7:30 A.M.- Oct. Challenger Job Cuts; 8:30 A.M.- Initial Weekly Jobless Claims (335K), Continuing Claims (2863K), Q3 GDP (+1.9%), Q3 Chain Deflator (+1.4%); 3:00- Sep. Consumer Credit ($11.0B)
Friday: 8:30 A.M.- Oct. Non-Farm Payrolls (+100K), Oct. Non-Farm Private Payrolls (+110K), Oct. Unemployment Rate (7.3%), Oct. Hourly Earnings (+0.2%), Oct. Average Workweek (34.4), Sep. Personal Income (+0.2%), Sep. Personal Spending (+0.2%), Sep. PCE Prices- Core (+0.1%); 9:55 A.M.- Nov. U of Michigan Sentiment Survey (75.3)
Earnings Reports (11/04-11/08)
Monday: Before the bell- (CME), (GSS), (K), (RLGY), (SE), (SNTA), (SYY), (TESO), (VMC); After the bell- (APC), (APL), (CF), (ED), (DRYS), (ELNK), (FST), (GDP), (GTAT), (HTZ), (LF), (MNKD), (MRO), (MDR), (NFX), (PXD), (THC), (VNO), (WFT), (WMGI)
Tuesday: Before the bell- (AOL), (ARCO), (ASH), (BDX), (CHTR), (CTSH), (CVS), (DLPH), (DNR), (D), (EMR), (EXPD), (FE), (FOSL), (HCA), (HCN), (HL), (HST), (ICE), (LBTYA), (LPX), (MPEL), (KORS), (ODP), (OMX), (OWW), (HK), (REGN), (REN), (TMUS), (TRP), (VSI), (ZTS); After the bell- (ANV), (BLMN), (CTRP), (DVA), (ETP), (HAIN), (IAG), (JAZZ), (LINTA), (MELI), (MYGN), (OKE), (PZZA), (SD), (SSRI), (TSLA), (VCLK), (WWWW), (ZAGG), (Z)
Wednesday: Before the bell- (AGU), (CNP), (CHK), (DVN), (DUK), (ENB), (HFC), (HSP), (HUM), (VOYA), (LAMR), (MGA), (TAP), (NPSP), (PKD), (PWE), (PNK), (RL), (ROC), (STRZA), (RGR), (TLM), (CG), (TWX), (VG); After the bell- (ATVI), (BKD), (CBS), (CTL), (CXO), (CLR), (CXW), (ENS), (GNK), (G), (AWAY), (MDLZ), (NDLS), (OAS), (QCOM), (SCTY), (TPX), (TSO), (RIG), (TCAP), (SLCA), (WFM)
Thursday: Before the bell- (AMCX), (APA), (MT), (BCE), (BZH), (BDBD), (CPN), (CNQ), (FUN), (CQB), (CBB), (ENDP), (EOG), (FNP), (FLO), (FWLT), (HNT), (HIMX), (JRCC), (LRN), (MWW), (NSM), (RDN), (GOLD), (RGEN), (RGLD), (SMG), (SNI), (SI), (STWD), (SSYS), (TW), (THS), (VNDA), (WEN), (WWAV), (WIN); After the bell- (MDRX), (BNNY), (BEBE), (WIFI), (XTEX), (DAR), (GERN), (GRPN), (INFY), (MCP), (MNST), (NVDA), (PCLN), (RPTP), (JOE), (TUMI), (UBNT), (UNXL), (DIS), (YRCW)
Friday: Before the bell- (COV), (SSP), (EBIX), (EGO), (HALO), (TU)
ORM Open Options Positions
- ADSK- We’re long the Dec. $44 calls for $0.92. (11/1)
- AEO- We’re long the Nov. $16 calls for $0.44. (10/30)
- CIT- We’re long the Jan. 2014 $52.50 calls for $0.57. (10/25)
- FB- We’re long the Nov. $57.50 calls for $2.28. (10/23)
- FE– We’re long the Nov. $38 calls for $0.59. (10/29)
- HK- We’re long the Jan. 2015 $10 calls for $1.44. (4/3)
- JIVE- We’re long the Nov. $12.50 calls for $0.80. (10/24)
- KMX- We’re long the Nov. $45/$48 put spreads for $0.98. (10/15)
- MAS- We’re long the Jan. 2014 $26 calls for $0.25. (10/28)
- NBR- We’re long the Jan. 2014 $20 calls for $0.36. (10/22)
- REN- We’re long the Nov. $10 calls for $0.35. (10/24 and 10/31)
- WIFI- We’re long the Nov. $7.50 calls for $0.29. (10/18)
- WMGI- We’re long the Nov. $30 calls for $0.55. (10/2)
ORM Options Positions That Were Closed Out Or Expired This Week
ELN- On 10/31, we sold our Nov. $16 calls for $0.60, resulting in a gain of 100%.
- PWR- On 11/01, we sold our Nov. $30 calls for $0.95, resulting in a gain of 111%.
Weekly S&P Sector ETFs Performance: Consumer Staples (XLP) +1.17%, Healthcare (XLV) +0.72%, Technology (XLK +0.48%, Industrials (XLI) +0.43%, Consumer Discretionary (XLY) +0.39%, Utilities (XLU) -0.36%, Energy (XLE) -0.60%, Financials (XLF) -1.15%, Materials (XLB) -1.29%
Various Asset Classes: U.S Dollar (UUP) +1.92%, Bonds (TLT) -1.68%, Agriculture (DBA) -2.50%, Gold (GLD) -2.69%, Silver (SLV) -2.90%, Oil (USO) -3.37%, Natural Gas (UNG) -7.82%
Have a great weekend.