The nagging issues for yesterday’s session included the woeful auto sales figures for the month of March.  Investors were rightfully disappointed with monthly auto sales, which declined 1.7% in March as experts were looking for a 2.2% increase. While it was just an exaggeration of long-term trends, the degree in which cars sales declined implies an economic red flag.  

It’s not.

It is true that car sales were down 11.5%; overall, consumers stepped up to buy more expensive vehicles instead:

• Large SUVs +26.2%
• Small SUVs +7.6%
• Luxury SUVs +9.8%
• Pickup Trucks +5.2%
• Crossovers +11.4%

Big Spenders Spending

Oh Lord, won't you buy me a Mercedes Benz?
My friends all drive Porsches, I must make amends.
Worked hard all my lifetime, no help from my friends,
So Lord, won't you buy me a Mercedes Benz?

-Janis Joplin

However, it was rich folks that did a lot more than tire-kicking with sales increases:

• BMW 3.3%
• Mercedes 2.0%
• Jaguar 13.2%
• Maserati 31.6%
• Bentley 109.0%

There are going to be many more economic data points out this week, including the jobs report. The market is anxious; but don’t get caught up with the knee-jerk moves and mini-panics. I think the economy is beginning to accelerate, and growth is happening in the right spots. 

Today’s Session

The market looks lower at the open as directional bias is still to the downside, but each session finds buyers even if not enough to completely stem the gravitational pull.  (I don’t think buyers of dips want the market to turn higher just yet, as they accumulate positions.)

Tensions are palpable; this is going to be an intense week.