12:45pm (EST)
The market got a nice pop at the open dispite mixed economic news as the bulls look to reclaim prior support levels. Jobless Claims came in better-than-expected while Housing numbers, which have been hot, cooled.
Initial Claims fell 26,000 to 359,000 which was the lowest level since July. The suit-and-ties were looking for a decline to 375,000, Continuing Claims dropped 4,000 to 3.27 million.
Pending Home Sales came in below expectations as the index slipped to 99.2, down from a 2-year high of 101.7 in July. The dip was blamed for the ongoing shortage of lower priced homes.
Elsewhere, Durable Orders tumbled 13.2% in August which was a shocker to say the least. Futures took a hit but remained positive which surprised the bears. Wall Street had penciled a drop of a little over 5% and the blame was placed on weaker airline and auto orders.
Tomorrow is end of month and quarter for the market and we haven’t seen the “window-dressing” that was expected to prop up the market this week. This means fund mangers are standing pat and locking-in profits on their winners, hoping the market retreats. That could be a dangerous game. Of course, there are some money managers buying which is why the market has been a little choppy this week.
We said this morning the bulls needed to hold their gains and the final hour could be crucial as we head into tomorrow’s action.
The Dow is up 81 points to 13,495 while the S&P 500 is higher by 13 points to 1,446. The Nasdaq is showing a gain of 37 points to 3,130.
As usual, we have a lot to talk about as some of our current trades are showing nice pops so let’s get on it. Subscribers, check the Members Area for the updates.