Futures vs FV: SP +5.03; DJ +31.42; NASDAQ +11.51
Many news stories this morning and just a modest relief move in the indices thus far. Futures gapped upside, rose into 6:30ET, but have since struggled. The bounce does not look that solid and likely evaporates as the stock indices continue a test of their recent almost 2 week leg higher.
CPI, March: 0.4 vs 0.4 exp vs 0.2 prior. 1.9% year/year vs 1.5% prior
Core: 0.1 vs 0.2 exp vs 0.1 prior. 2.0% year/year vs 2.1% prior
Apparel lower, Transportation +1.5%, gasoline +6+%, prescription drugs +0.6%
ECB: No changes, not doing anything for the rest of the year unless the conditions necessitate adjustments. Sees slower growth confirmed by the data and the outlook for the EU has tilted downside. High times in Europe.
FOMC Minutes: to be released this afternoon.
Downgrades: AAPL; FL; Novartis
Upgrades: DIS, UA, WEN, JWN
Earnings beats: DAL
Misses: WD40 (TL)
Bonds: 2.449% vs 2.502%
EUR/USD: 1.1257 vs 1.1266
USD/JPY: 111.14 vs 111.15
Oil 64.31, +0.33
Gold 1306.90, -1.40
The futures are at best modestly higher in relief. As noted above, it is quite probable the futures give up this early bounces as the indices put in another consolidation session from their recent run. Thus far normal, watching how the leadership groups test as well as those new groups trying to turn up again, e.g. energy, drugs/biotech, older industrial sectors.
Jon Johnson, Chief Market Strategist
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