The market has traded in a tight range again today but much of the action has favored the bulls. Economic news was mixed for the most part but it didn’t excite any buying or selling as Wall Street continues to wait on clues from Europe. We mentioned this tight range could continue until the end of the month but there could be some movement in the next 24 hours with Thursday’s lineup on deck. More on this in a minute…
The Consumer Price Index (CPI) was flat (0.0%) for a second straight month versus expectations for a 0.2% pop. The Empire Manufacturing Index came in at -5.85 which was way worse than the +7 that had been penciled-in and the nastiest reading since last September. Industrial Production was up 0.6%. And finally, the National Association of Home Builders gave Housing stocks a lift after saying builder confidence for single-family homes climbed in August to its highest level in more than five years.
As far as earnings, we mentioned yesterday Cisco Systems (CSCO, $17.41, up $0.24) would be confessing today after the closing bell and a good report could move Tech stocks higher for the rest of the week. The company usually beats by a penny but the grapevine is swirling they could miss estimates. There are other rumors Cisco will beat by 3 cents. A penny beat will keep the market at support while a 3-cent beat could get the indexes testing new highs. A miss could cause a slight pullback to support.
Tomorrow will also be huge for economic news as Initial and Continuing Claims hit the wire at 8:30am along with Housing Starts and Building Permits. However, the granddaddy report of them all will be the Philly Fed numbers which will be released at 10am and it should be a market moving event.
As we head to press, the Dow is down 7 points to 13,164 while the S&P is up a point to 1,404. The Nasdaq is up a dozen to 3,029. Our new trade from yesterday is up 40% and we have important trade instructions for you to follow.
Subscribers, check the Members Area for the updates. Also, stay locked-and-loaded in case we release another new trade today or we may take profits if we can squeeze a little more juice out of yesterday’s recommendation.