The Fuse
Equity futures are not moving too much this am as they look to digest the strong gains of the week.
Interest Rates are down slightly this morning as bond holders take some profits.
Markets are flat this morning, stocks in Europe barely rose up. FTSE gained nicely, up .3%. Gold is rallying towards 3,700 and silver is up 1%. Crude is up 1.3%, US dollar indext was flat. Yields crawled higher, German bund yields and US 10 yr treasuries up 1bp, stocks in Asia were mixed with strong gains in Nikkei and Hong Kong, Shanghai down slightly.
Earnings were decent from Adobe last night but guidance was a bit suspect. Not much on the radar for the rest of the month but FDX, NIKE and a few more into October.
Markets were mixed most of the day as the buying that occurred early on dissipated quickly. There was really no followthrough here even after the better than expected PPI number, but given the fact rallies have happened here most of the week there would no surprise if the bulls take a break the remainder of the week.
Strong breadth and good volume yesterday as buyers really took advantage of the situation. CPI was benign and that was a signal for buyers to step in.
It is hard to argue with new highs in the indices, the IWM is right up against it to nearly make it a quad. We could see that early next week.
The Internals
What’s it mean?
Strong internals yesterday with good movement from the VOLD and ADD. TICKS were very green all day, put/call headed lower while the VIX remains benign. A good reading for the bulls.
The Dynamite
Economic Data:
- Friday:Consumer sentiment
Earnings this week:
- Friday:
Fed Watch:
We heard plenty from the Fed last week and will have nothing this coming week as the committee is in a ‘quiet period’ before the next meeting. That could be raucous, with both doves and hawks digging their heels in to support policy measures. Will it be one, two or no cuts?
Stocks to Watch
Bonds – Once again, we’ll be watching bonds here, especially yields and if they move sharply higher following CPI and PPI. That might only happen if a hot number comes.
Gold – Some big central banks have been buying gold hand over fist, and that has pushed the metal to all-time highs. Gold and silver are outperforming markets in a huge way this year and that may continue.
Technology Stocks – Some were hot early in the week like Google, but NVIDIA fell sharply even as Broadcom rose up to new all-time highs. Semiconductor stocks have not responded well to President Trump’s rhetoric.
