US equities posted gains on the week with the S&P managing a 1% rally to finish at 1405.9 as technician are looking at the market internals which suggest this move is not convincing for a real bulls case, as the advance decline line was lower, volume was light (S&P Futures volume 20% below 4 week average) and a total Put/Call ratio of 1.02 suggests bulls and bears are almost even. With volatility continuing to sink with the CBOE VIX at 14.74 down another 5.75% on the week as markets continue to add risk. Markets are setting themselves up for some type of a break move from here. The DJIA was up 0.85% at 13,208 close for the week and equity moves favored risk with the NASDAQ posting a 1.75% move higher at 2,723 close for the week.
Yet again the Euro is still centre stage as it closed the week down 0.8% at 1.2288 and with commodity currency moves also fading somewhat as AUDUSD up 0.1% at 1.0575 and classic carry trades like EURJPY down 1% at 96.20 seem to be decoupling somewhat from other risk assets. The Dollar index closed up 0.22% at 82.63 on the week.
Crude saw larger drawdown on oil inventories of -3.7m barrels versus analyst forecast of -0.6m draw Brent rally 4.4% to 113.54 as the Sept contract rolls to Oct. WTI less obvious move up 2.2% at 93.40. OPEC suggesting cuts to demand in 2013, coupled with China slowing and weaker trade data still didn’t slow the bigger moves. RBOB unleaded gasoline futures closed up 3.1% at 3.0200. Natural Gas plunged 4.5% at 2.783 on the September 2012 contract this is the third weekly decline as forecast for cooler weather in New York are reported through. Heating Oil finished up 3.5% to 3.031 on the week. Gold finished the week up 1% at USD$1623.10 /oz in New York.
RIMM up 18.6% on the week and gained 6.3% on Friday as a California judge overturned a jury finding that the BlackBerry maker had infringed on others patents. Talk that IBM maybe looking at RIMM’s enterprise services business.
YAHOO down 5.1% as the company warned that it may not return all of the cash it gets from selling its stake in Alibaba to shareholders.
Fusion-io Inc. up 38% on the week to $26.86 reported better-than-expected results for its 4th Qtr. The company also said it expects 1st Qtr revenue to “modestly increase” over its 4th Qtr.
Monster Beverage plunged 18.7% on the week and 9.7% on Friday after missing earnings expectations by $0.02 and missing revenue forecasts by $3 million.