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The Market

Technical

Is it getting boring to have me say, the indices (DJIA 13164, S&P 1405) had another flat, uneventful day (Dow down, S&P up)? Sorry, but they did, finishing (1) near the upper boundary of their short term trading ranges [12022-13302, 1266-1422] and (2) within their intermediate term uptrends [12176-17176, 1281-1851].

Volume decline; breadth was mixed. The VIX continues to perplex me, closing down slightly---the sixth day below the lower boundary of its intermediate term trading range. As I have made clear, I am not convinced its performance is confirming a break. I am holding off for another day before making the call.

GLD was up a bit, remaining well above the lower boundary of its intermediate term trading range but still no challenge to the level of the last in a series of lower highs.
http://www.minyanville.com/sectors/precious-metals/articles/precious-metals-market-precious-metals-stock/8/14/2012/id/43209

Morning Journal - Greece is nothing compared to Japan

Economics
This Week’s Data

The International Council of Shopping Centers reported weekly sales of major retailers fell 1.0% versus the prior week but rose 2.7% versus the comparable period a year ago; Redbook Research reported month to date retail chain store sales up 1.6% versus the similar timeframe a month ago and up 3.4% on a year over year basis.

The January Case Shiller home price index decline 0.5% versus expectations of a decrease of 0.4%.
http://scottgrannis.blogspot.com/2012/02/housing-prices-were-still-weak-late.html

The Conference Board’s February index of consumer confidence came in at 70.8 versus estimates of 64.9.
http://advisorperspectives.com/dshort/updates/Conference-Board-Consumer-Confidence-Index.php

The Richmond Fed’s February manufacturing index was reported a 20.0 versus expectations of 13.0.
http://mjperry.blogspot.com/2012/02/richmond-and-dallas-fed-report.html

Weekly mortgage applications fell 0.3% but purchase applications soared 8.2%.
http://www.calculatedriskblog.com/2012/02/misc-purchase-mortgage-applications.html

Fourth quarter GDP came in up 3.0%, slightly better than the 2.8% that was anticipated; the GDP deflator was up 0.9% versus expectations of up 0.4%.

Staples (SPLS) 2011 Review

Staples (SPLS) is one of the largest office supply superstore chains in the US, Europe, Asia and South America (1900+ stores).

SPLS also sells its branded products in over 2400 grocery stores in the US. In the past five years, the company has grown profits at a 5% pace, earning a return of equity in the 12-18% area. In 2004, it initiated a dividend and has since more than tripled it (27% AR). While SPLS did not escape the impact of the recent economic down turn, it should resume its long term growth as a result of:

(1) as an industry leader, it is positioned to sustain above average growth due to better margins and its effective merchandizing skills,

(2) new products,

(3) new store expansion,

(4) improving same store sales by expanding its business technology and copy and print services,