The bulls are carrying yesterday’s late day rally into today’s session but the energy seems to be waning as the major indexes are off their highs. There have been a couple of economic reports that have helped stabilize the market (for now) and there are still a few that will sway the market over the next couple of days.
This morning, the Commerce Department said durable goods orders were better than anticipated. Orders for manufactured goods rose 2.9% in April which represented the biggest jump in three months.
Elsewhere, April new home sales rose nearly 15% and came in at 504,000, the highest in two years, versus expectations of 425,000. A lot of this fluff is due to the expiring tax credit and rock bottom mortgage rates but still good news, nonetheless.
As we head to press, the Dow is up 66 points, or 0.7%, and is trading at 10,109. The index has traded to a high of 10,179.
The S&P 500 is showing a 9 point pop at 1,083 while the Nasdaq is higher by 24 points to 2,235.
We should get some interesting numbers on unemployment on Thursday and the bulls don’t seem too worried about it judging by today’s action. However, the potential is there for a surprise with the Initial Claims report and Friday we get Personal Spending numbers.
As we wait for the market’s next move, we were able to close out two more winning trades (113% and 65% gains) during yesterday’s volatility that we will be updating on our the 2010 track record today. We talk more about the current market environment and the other trades we have going in the Members Area so we want to get everyone in there as we look ahead to the rest of today’s action.