The markets have a summer doldrums feel to them today as traders are still returning form the Fourth of July week. A lack of news and a lull in economic data, has the markets moving decidedly higher on light volume. The NYSE volume is 235 million vs. the average of 281 million shares. New highs are shellacking new lows: NYSE: 108/6; Nasdaq: 135/22. Advancers are leading decliners 1887/1020 on the NYSE and 1753/1085 on the Nasdaq.
Economic activity and earnings picks up later in the week. On the economic front, this afternoon we get a read on consumer with the Consumer Credit report due out at 3 PM ET. On Wednesday, we get the release of the Producer Price Index (PPI), Thursday, Consumer Price Index (CPI) and Friday, the University of Michigan Consumer Sentiment (Preliminary).
Earnings don’t pick-up till Friday with the release of financial results from some big banks; JP Morgan Chase (JPM), PNC (PNC), Citigroup (C) and Wells Fargo (WFC). Interestingly, financials are leading the market today. The financial etf, XLF, is up over 2%. As mentioned in the Morning Hotline report, “The group has massively underperformed, so the stage is set for earnings beats.”
We like the way things are playing out so far today, and to see the transports leading; the Dow Transportation Index is up 1.84%. Utilities are weak, as investors rotate out of the defensive group. The red flag this session is the lack of participation from the semiconductors.
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