Sluggish to start, sluggish most of the day, but a slow, steady rise. Much of the move that held is with the large cap NYSE stocks that led before the last test, e.g. PG, VZ, CLX, MCD, JNJ -- all bouncing quite decently.
Chips were up but then faded. Software not bad but not racing higher. Late session, however, most everything is getting a bid. Will see how that plays out.
The news trickled out over the session with the Fed's Bullard saying he saw possible cracks in growth and that a slowdown now would make further hikes a tough call. Wow, 'possible' cracks? And then stating the obvious: if the Fed sees the economy slow there is less impetus for further rate hikes. Earning those big bucks. Bullard is non-voting right now.
Kudlow: In a post-GM meeting interview Kudlow was quite put out with the hardness of GM announcing layoffs less than a month to Christmas. Trump was less than kind, saying he might end GM's subsidies. Not sure how many there are and what amount, but that is an interesting tactic and one GM should expect from this administration.
On China, Kudlow stated that he "can't find much change to [China's] approach.' So . . . going nowhere with trade for now. One gets the feeling that the eternally optimist Kudlow is sandbagging a bit. Just a feeling.
We picked up some VZ early as well as some BABA. VZ quite strong, BABA was strong but then came Kudlow. Thus far the China stocks have weathered the negatives. Have to do it again. Also picked up some PG.
SP500 6.29, 0.23%
NASDAQ -4.42, -0.06%
DJ30 80.60, 0.33%
NASDAQ 100 0.22%
Jon Johnson, Chief Market Strategist
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