Futures vs FV: SP +6.85; DJ +76.75; NASDAQ +19.26
The news is still not good, but today US equity markets are snapping back, perhaps on pre-weekend fear followed by some relief that nothing major occurred.
NKorea tried a missile launch that exploded on takeoff.
China GDP 6.9% vs 6.8% exp and 6.8% year/year.
French elections: Still a week away, still worries about the jump by the communist candidate and also some allegations of double counting absentee votes. It's the Russians!
Jobs: GM adding 1100 in San Francisco area to develop self-driving technology.
Empire Manufacturing PMI: 5.2 vs 13.0 exp vs 16.4 prior.
Perhaps the sentiment data that surged post-election is topping out in the face of the hard data that has not improved. Yes there was some more spending and buying post-election on hope, but hope needs actual policies, and tax and healthcare reform are effectively dead right now.
Bonds: 2.232% vs 2.232%. Dropped close to 2.2% but yields have recovered some.
USD/JPY: 108.541. Dollar continues lower against yen.
Oil: 53.06, -0.12
Gold: 1289.60, +1.10
Stocks are set to open higher on some relief of no major issues over the weekend. Oil still faces resistance and those stocks really struggled into the weekend. We will see how those stocks along with the important semiconductors can recover. Small caps and midcaps sold hard into the weekend and we will see if this bounce can get their patterns back on track. NASDAQ is holding its trend; it will have a chance to show leadership today.
Jon Johnson, Chief Market Strategist
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