Futures vs FV: SP +7.77; DJ +80.09; NASD +52.29
After struggling to hold near the prior highs Tuesday, stocks are set to move higher and push SP500, NASDAQ more definitively above the highs. AAPL, AMD and of course a slew of other earnings are still being treated positive and pushing those gains. The data is helping as well.
ADP: +275K vs 170K vs 151K prior (from 129K)
Mortgage apps: -4.3% vs -7.3% prior week
FOMC Decision day. Some saying the Fed could 'shock' the market by not being as nearly accommodative as the market takes it to be. Others such as Jeremy Seagal say the Fed could reduce the discount rate a few basis points as it has crept higher. Can't have those rates naturally rise. This is a free market after all, right?
ISM: at 10:00ET, 55.00 expected vs 55.3 prior
Earnings beats: AAPL; AMD; CVS; EL; GRMN; HLT; HUM; YUM; MDLZ
Misses: ADP (TL); CLX (TL, BL); Molson (TL, BL)
Upgrades: TTWO; NXPI; GLW; DIS; IR; COP
AAPL is of course dominating the conversation as its iPhone sales fall along with most other metrics outside of services. Moreover, revenues declined for the second straight quarter. Apparently, however, it was enough because the stock rallied 10 points on the earnings last night (after a 4 point session loss) and have held that gain rock solid to the open.
Thus, for now, it looks as if earnings are strong enough to keep the move higher going and push SP500, NASDAQ farther above the old highs.
Bonds: 2.509% vs 2.505%
EUR/USD: 1.1224, +0.0009
USD/JPY: 111.37, -0.04
Oil: 62.38, -0.63
Gold: 1282.00, -3.70
Futures rose on the AAPL results last night then gapped upside this morning. Overall futures are fading off the highs, picking up some downside speed toward the open, but still holding plenty of gains. We will see if sellers enter on this gap -- AAPL looks strong but other tech is not necessarily solid -- outside of semiconductors. Chips are up on some earnings and if the chips work, the market overall works.
Jon Johnson, Chief Market Strategist
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