The Doors at the office are rocking today…
The bulls have gotten a bevy of good news today from overseas to here at home. Futures were already pointing towards a strong open when we poured our first cup of coffee this morning as China’s factory data and their purchasing managers index (PMI) numbers came in better-than-expected. Additionally, the United Kingdom’s PMI soared to a 16-year high while retail sales in Germany increased 2.3% in October after a 1.8% decline in September.
Here at home, the ADP Employment Change data revealed private payrolls expanded by 93,000 in November while economists were expecting 58,000 new jobs. This was the best ADP reading in three years and futures gained even more momentum before the bell.
Shortly after the open, the ISM Manufacturing Index for November came in at 56.6, down slightly from the 56.9 print the market got last month but better-than-expected. October construction spending increased 0.7% for the second straight month while the suit-and-ties had been expecting a decline of 0.5%.
We mentioned this morning the bulls would run up to resistance and they have. The better news is they have temporarily broken through resistance.
The Dow is currently up 240 points to 11,245 while the S&P 500 is higher by 20 to 1,206. Both indexes are above the first wave of resistance which is 11,200 and 1,200, respectively. If the two can hold, we should see a run to Dow 11,400 and S&P 500 1,225.
The Nasdaq is surging 58 points, or 2.3%, and is at 2,556. For all of the talking heads who said Tech was dead yesterday, wrong. The strong support at 2,500 has been money and we are still expecting a push to 2,600-2,700 for the Nasdaq by yearend.
Cyber Monday was a huge success as shoppers pounced on deals and promotions offered online. We said that morning it was possible spending could top $1 billion for the first time ever and it did. According to Research firm, comScore, online sales jumped 16% from a year ago to $1.03 billion and are up 13%, to $13.6 billion, since the beginning of November.
There are a number of other headlines we would love to talk about but we have a ton of great news to cover in our Members Area. Most of our trades are showing strong gains today so let’s see where we are at.]]>