Market Overview

Mid-Morning Market Update: Markets Rise, Greenbrier Posts Downbeat Revenue

Mid-Morning Market Update: Markets Rise, Greenbrier Posts Downbeat Revenue

Following the market opening Thursday, the Dow traded up 0.41 percent to 14,609.77 while the NASDAQ gained 0.09 percent to 3,221.45. The S&P also rose, gaining 0.44 percent to 1,560.55.

Index Technicals:
The S&P looks set to lose its 1,560 support, while holding 1,540 support below that, with a bearish MACD cross and a slightly bearish divergence.

The Dow ended yesterday right at its 14,550 support, with 14,400 acting as support below that. The MACD is showing a slightly bearish divergence on the daily chart as well.

The Russell looks to be holding its 50 EMA daily support at 920.23, with 895 support below that and a bearish MACD divergence on its daily chart.

Finally, the NASDAQ looks to be breaking its ascending wedge to the downside, with 3,200 support below that and a bearish MACD divergence and cross on its daily chart.

Top Headline
The Greenbrier Companies (NYSE: GBX) reported a 22% drop in its second-quarter profit.

Greenbrier's quarterly net income declined to $13.8 million, or $0.45 per share, versus $17.7 million, or $0.57 per share, in the year-ago period.

Its revenue dropped to $423.2 million from $458.2 million. However, analysts were expecting earnings of $0.37 per share on revenue of $442.9 million,

Equities Trading UP
Alcatel-Lucent SA (NYSE: ALU) shot up 8.59 percent to $1.39 after Deutsche Bank upgraded the stock to “buy.”

Shares of Finisar (NASDAQ: FNSR) got a boost, shooting up 7.61 percent to $13.57 after Lazard Capital upgraded the stock from “neutral” to “buy.”

Sarepta Therapeutics (NASDAQ: SRPT) was also up, gaining 5.43 percent to $35.90 after analysts at RW Baird initiated coverage on the stock with an “outperform” rating.

Equities Trading DOWN
The Greenbrier Companies (NYSE: GBX) shares tumbled 2.34 percent to $21.29 after the company reported downbeat quarterly revenue.

Aruba Networks (NASDAQ: ARUN) was also down, falling 2.95 percent to $22.84 after UBS downgraded the stock from “buy” from “neutral.”

Shares of Alamos Gold (NYSE: AGI) were down 4.65 percent to $11.90. The company announced its plans to release its Q1 results on April 25, 2013.

In commodity news, oil traded down 1.20 percent to $93.32, while gold traded down 0.51 percent to $1,545.50.

Silver traded down 0.72 percent Thursday to $26.61, while copper fell 0.20 percent to $3.33.

European shares were mixed today. The ECB left its key lending rate unchanged at 0.75%, while the Bank of England left its key lending rate unchanged at 0.5%.

The Eurozone Services PMI dropped to 46.4 in March from 46.5 in February on expectations of a reading of 46.5. Weakness in Germany and France weighed while Italy and Spain's services PMIs were slightly stronger than expected.The British services PMI jumped to 52.4 in March from 51.8 in February when economists were expecting a decline to 51.5.

The Spanish Ibex Index gained 0.15% while the Italian FTSE MIB Index rose 0.18 percent. Meanwhile, the German DAX fell 0.01 percent and the French CAC gained 0.11 percent and U.K. shares declined 0.78 percent.

US initial jobless claims rose 28,000 to 385,000 in the latest week ended March 30, the Labor Department said.Economists were expecting claims to fall to 350,000.

Fed President Charles Evans and Chairman Ben Bernanke are set to speak.


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