We are in rally mode again today as earnings continue to impress investors with big tech at the head of the parade. As of yesterday morning, 64% of the S&P500 companies that have reported have beat their earnings estimates, exceeding the 22 year average of 63%, according to Thomson Reuters.

MSFT is up 7%, leading the most actives on a stellar report and FB is at all-time highs with earnings coming up on July 27. NASDAQ is up 1%, working on joining the Dow and S&P at record highs, only about 100 points to go for the NASDAQ to make a new 52 week high. Market internals are strong across the board but the NASDAQ up volume is a very convincing 75% (down volume 19%). The healthcare sector is strong today with banks continuing to participate.  

Oil hit a 2 month low but has reversed after the EIA inventory report was released.  U.S. crude oil inventories stockpiles declined for the 9^th consecutive week, falling 2.3 million barrels.  Oil refineries operated at 92.3% of capacity.  Oil refinery inputs averaged more than 16.5 million barrels per day during the week of July 8, down 143,000 from the prior week. Gasoline production increased, averaging 10.2 million barrels per day and distillate fuel production increased, averaging 5.0 million barrels per day. U.S. crude oil imports averaged 7.8 million barrels per day last week, lower by 522,000 barrels per day from the prior week.

WTI was $45.37 per barrel on July 8, 2016, $3.65 below last week’s price and $7.37 under a year ago. The retail national average price for regular gasoline price decreased for the 4th week to $2.253 per gallon on July 11, 2016, $0.038 below the prior week’s price and $0.581 lower than the prior year period. The national average retail diesel fuel price decreased to $2.414 per gallon.