The markets are continuing the climb higher as earnings season is in full swing. Thus far, 66% of the 32 S&P 500 companies that have reported have beat the street’s estimates. The Dow and the S&P have hit record highs intraday for the third and fourth day in a row, respectively. The NASDAQ is keeping pace, but it still has some ground to make up. Look for 5000 to become support as the index works its way higher. The Dow Transportation Index has made a big move above 8000 and will face some resistance at 8100. Market internals are solid with advancers (62%) outpacing decliners (35%), and new highs (179) solidly beating new lows (3) on the NYSE.

Initial jobless claims for the week ending July 9 was 254,000 unchanged from the prior week. The 4 week moving average decrease 5,750 to 264,750. This is now 71 consecutive weeks with claims below 300,000. 

Fed Presidents are speaking today including Esther George, Kansas City; James Bullard, St Louis; Robert Kaplan, Dallas; and Dennis Lockhart, Atlanta, who indicated that the Fed can continue to be “cautious and patient” in raising rate due to uncertainty from the Brexit. He does still believe that a hike could on the table for this year stating, "I still can imagine circumstances in which at least one policy move could take place and possibly two. Of course it will depend on the economy."

Oil is recovering half of its losses from being down 4% yesterday is currently trading around $45.65 per barrel. US Treasury yields are also up. Gold and silver are lagging but copper continues higher.  Gold is at a two week low with August down to $1332.60 on the Bank of England (BOE) leaving rates intact. However, easing could come next month as the BOE stated "In the absence of a further worsening in the trade-off between supporting growth and returning inflation to target on a sustainable basis, most members of the committee expect monetary policy to be loosened in August."