Futures vs FV: SP +12.93; DJ +141.27; NASDAQ +42.51
Futures on a steady rise all morning though peaked out, holding most of the gains, after the Q3 GDP second revision. A steady build as shown is a much better indication than the gap to a spot and then stuck there. This is a good indication the move off that test of the October low continues.
GDP Q3, 2nd: 3.5 vs 3.6 exp vs 3.5 1st
Consumption: 3.6 vs 3.9 exp vs 4.0 1st
Core PCE: 1.5
Business Investment: 2.5 vs 0.8 first vs 8.7% Q2
Inventories surged, adding more to GDP this time as other areas waned. That makes the quality of this report not as solid.
Fed: Powell speaks at 12:00ET in what is called his most important speech yet. Of course people are looking at hints for a Fed softening. Recent Fed speakers (Tuesday) have been read as leaning toward a softening for 2019.
Fed Funds Futures: Now showing 1 to 2 hikes in 2019 versus the 2 to 3 previously.
Mnuchin is reported to have been lobbying the Fed for alternatives to rate hikes.
Brexit: May changes course, says will allow parliament to alter Brexit deal.
TIF: Sales fade, reportedly on fewer Chinese buyers.
Bonds: 3.064% vs 3.059%
EUR/USD: 1.128 vs 1.1294
USD/JPY: 113.86 vs 113.79
Oil: 51.16, -0.40
Gold; 1213.00, -0.40
Market is set to move higher and continue the bounce off the October low test after a Tuesday pause that saw stocks come back from a weak open. The market has a lead. The past few weeks it could not hold a lead. Now it looks as if it can do that. We will see if we can get a few more good entries to go with those we have already picked up as this move started to gel.
Jon Johnson, Chief Market Strategist
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