Futures vs FV: SP +19.07; DJ +174.51; NASDAQ +54.84
Futures gapped lower then started a morning-long rise to positive, a nice low to high move though it occurring pre-market means there was no ramp of fear. Still, a solid move toward the open.
CPI: Helped ramp the gains even more.
Overall: 0.3% vs 0.3 vs 0.1 Sept. Year/year 2.5% as expected
Core: 0.2 vs 0.2 vs 0.1 Sept. Yr/yr 2.1 vs 2.2 exp
Used cars up, new cars down.
Trade: Trump not to impose auto tariffs for now.
Germany: GDP contracts (-0.2) for the first time in 3 years. THIS just as the ECB halts its bond buying at yearend and contemplates starting to raise interest rates.
Brexit: There is now a draft, supposedly . . .
Mortgages: -3.2%, another week lower.
Oil: OPEC reportedly ready to 'do whatever it takes' to hold oil prices from sliding, including a 1.4M bbl/day production cut.
Beats: M, TLRY, Tencent
Downgrades: AALP (Guggenheim); K; CAG
Bonds: 3.151% vs 3.147%
EUR/USD: 1.1297 vs 1.13124. Dollar surges again against euro on Germany GDP drop.
USD/JPY: 113.93 vs 113.90
Oil: 56.30, +0.61
Gold: 1201.80, +0.40
After a very mushy up and down and down and up session Tuesday, perhaps the algos have decided to buy. Perhaps all the big brokerages, funds, etc. got together and decided to reprogram their algos to a buyside bias.
Hate upside gaps. This move started with a gap off that late October low, and then another one last WED was the follow through. Oh well, there are good patterns out there, and if they move well we want to pick them up.
Jon Johnson, Chief Market Strategist
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