1:15pm (EST)
Futures were flat for much of last night and turned positive ahead of Europe’s open this morning which was a good sign. Following the “hold” on Wednesday by the bulls, we were curious to see how the overseas markets would open after Wall Street and the talking heads picked apart the ECB’s lending program. We were also excited about today’s economic numbers.
It has been awhile since we have written that last sentence but the news here in the States continues to come in better-than-expected. Initial Claims were down 4,000 to 364,000 versus estimates for 380,000. Continuing Claims came in at 3.54 million versus a forecast for 3.6 million claims.
Elsewhere, Personal Consumption increased 1.7% in the third quarter while the Chicago Fed National Activity Index had a reading of -0.37 versus expectations for -0.17. Additionally, the Michigan Consumer Sentiment Index came in at 69.9 compared to a forecast for a print of 68. Leading Indicators increased 0.5% versus calls for an increase of 0.3%. Third-quarter gross domestic product (GDP) increased by 1.8% versus a forecast for an increase of 2.0%.
After a slow start, the bulls are stepping on the gas. The Dow is up 62 points to 12,170 while the S&P is higher by 6 points to 1,250. If anything, we would love to see a close above this level. The Nasdaq is up a double-deuce (22 points) and is right on 2,600. If Tech can close above this level it would be a bonus.
There is still some tension between the clowns on the Hill as they try to extend the tax cuts but hopefully the politicians can get something done by tomorrow. This news could be bullish as well.
Our recent trades continue to shine so let’s go check on them. Subscribers, hit the Members Area for the updates.
