Futures vs FV: SP +14.45, DJ +259.04, NASDAQ +67.71
FOMC Day, Trade talks start. Futures are up but more on earnings than anticipation of the Fed or trade. The latter two may come home to roost, but the morning is dominated by earnings. Futures trending higher all morning with a spurt to new morning highs the past half hour.
Earnings Beats: BA; AAPL; ADP; AMGN; EBAY (BL); SYK; MCD (same store sales miss)
Misses: T (TL); BABA (TL, weakest growth in 3 years); ATHM (TL)
Matched: AMD, increased guidance
ADP: 213K vs 170K expected vs 263K prior (from 271K).
Manufacturing jobs the highest in 3 years, the same jobs that were never coming back to the US.
M&A: INTC wants to buy MLNX
Bonds: 2.722% versus 2.710%
EUR/USD: 1.1419 vs 1.14351
USD/JPY: 109.64, +0.26
Oil: 53.84, +0.53
Gold: 1315.90, +0.70
All news is good news this morning. After a weak session for NASDAQ and big growth, the all clear signal is on for the open and the morning. Then Powell speaks this afternoon. He has succeeded in tap dancing for the markets his past two public appearances and he had best have his shoes all tightened up and ready to go. The market tends to expect more and more and at this point it is highly unlikely the Fed will bend more than it has already.
It would be great if earnings win out. That is the fundamental basis of the stock market, not the FOMC. Still, we have to see how the market fares with the FOMC decision and Powell's comments.
Jon Johnson, Chief Market Strategist
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