STTG Market Recap December 12, 2013

Other than a brief moment at the start of the day and a few minutes mid afternoon the S&P 500 was in the red the entire session as stocks continue to act weak.  The S&P 500 closed down 0.38% and the NASDAQ 0.14%.  Ironically again "good news was bad news" as the one key economic report this week - retail sales - came in better than expected.

The Commerce Department said retail sales increased 0.7 percent last month as Americans bought automobiles and a range of other goods. November's retail sales increase was the largest in five months and followed a 0.6 percent rise in October. Economists polled by Reuters had forecast retail sales, which account for about 30 percent of consumer spending, advancing 0.6 percent after a previously reported 0.4 percent gain in October.

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We remain overbought for the second session per the NYSE McClellan Oscillator.

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It was a rough session for yoga apparel maker Lululemon (LULU) as the company said fewer customers are visiting its stores and supply-chain issues are hitting sales in the crucial fourth quarter.

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Southwest Airlines (LUV) surged as Bank of America Merrill Lynch raised its rating on the airline operator's stock to "buy."  Airlines seem a bit overbought on the intermediate term but sure have been one of the star groups of 2013.

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Facebook (FB) surged on the S&P 500 addition we mentioned in yesterday's piece.

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