Futures vs FV: SP +4.65; DJ +83.41; NASDAQ +12.11
Futures are hardly strong, but are on a slow burn higher the past 2 hours. Not exactly the NYSE thundering upside to follow NASDAQ moving through the 50 day MA's, but not a rejection of the move either. As noted Tuesday night, the keys are NASDAQ holding and building on that break, SOX renewing the upside, and of course, NYSE indices following.
Earnings are the focus as they should be with more banks reporting.
Beats: BAC; GS; CAL
Misses: BLK (BL)
M&A: Fiserve (FISV) buying FDC. CRM looking at an acquisition as well. Looks as if there are deals being pushed now that stock prices went down fast relative to earnings expectations, making them 'cheap.'
Mortgages: +13.5%, building on last weeks 20+% jump. Rates dipped, buyers jumped in, fearing missing out on a bit of a reprieve.
Shutdown: House passes a bill ending the shutdown but providing no funding for a border wall. No need to speculate on how that will fare.
Trump orders 46K workers back to work on taxes, food inspection. There are SOME things the federal government should do, just not most of what it does.
Bonds: 2.731% vs 2.718%. Bonds continue to fade from the rally, indicating some stability returning in addition to stocks rising.
EUR/USD: 1.139 vs 1.1408. Dollar rebounds
USD/JPY: 108.77 vs 108.55
Oil: 51.64, -0.47
Gold 1290.50, +2.10
Futures continue rising slowly. Slow start is not bad, particularly with the soft start and then steady build as the morning progressed. Again, the key is NASDAQ continuing the move, SOX starting back upside after a test of breaking through the 50 day MA's, and the NYSE indices following on.
Jon Johnson, Chief Market Strategist
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