The market is barely out of the starting gate today, and is mostly meandering, as investors play the waiting game.

• Waiting the jobs report
• Waiting for Congress to get its act together
• Waiting for final earnings releases to come through

Talk about heavy lifting, the Communication Services sector is trying to single handily lift the entire S&P 500.   CenturyLink (CTL) is the top gainer, but Facebook (FB) and Google (GOOG/L) are putting the oomph in the sector. 

S&P 500 Index		-0.12%
Communication Services XLC	+1.50%
Consumer Discretionary XLY		-0.13%
Consumer Staples XLP		-0.38%
Energy XLE		-0.52%
Financials XLF		-0.27%
Health Care XLV		-1.14%
Industrials XLI	+0.05%
Materials XLB		-0.74%
Real Estate XLRE		-0.47%
Technology XLK	+0.10%
Utilities XLU		-0.14%

Market Breadth

NYSE

• Advancers 1,349
• Decliners 1,574

NASDAQ

• Advancers 1,262
• Decliners 1,956

Economy in Motion

Kansas City Southern (KSU) is having a great session as it continues to bubble up in the takeover rumor mill.  I think an offer is plausible, but it has been in and out of takeover speculation for 15 years.

Historically, transportation has been a great harbinger of where the economy is going.  The DJT has been trading above its 50-day moving average and is breaking out through a key resistance point. Obviously, airline stocks have been a drag.  But truckers and rails, including Kansas City Southern, are powering along strongly.  

American Airlines (AAL) is nearing its 50-day moving average in part to a growing sense the White House and GOP are pressing for more help for the industry.

 

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