15 Nov 2013 AMC - Market's bullish momentum continues after Yellen's speech....
Market Summary
European
Markets Closing Prices
European markets are now closed; stock markets across Europe performed as follows:
·
UK's FTSE: + 0.4%
·
Germany's DAX: + 0.2%
·
France's CAC: + 0.2%
·
Spain's IBEX: -0.1%
·
Portugal's PSI: -0.1%
·
Italy's MIB Index: -0.4%
·
Irish Ovrl Index: -0.4%
·
Greece ATHEX Composite: -0.9%
Before Market Opens
S&P futures vs fair value:
+3.20. Nasdaq futures vs fair value: +3.70.
The S&P 500 futures trade higher by 0.2%.
Asian markets ended higher across the board with Japan's Nikkei (+2.0%) pacing the advance. The index closed at its highest level since late May while USDJPY climbed above 100.00. Elsewhere, China's Shanghai Composite posted a solid gain (+1.7%) following the release of reform plans from the latest plenary session. However, many of the reforms mentioned—like loosening of the one-child policy—have been discussed in recent months. Regional economic data was limited to Hong Kong's GDP (+0.5% quarter-over-quarter versus 0.8% expected, 0.8% prior) and Singapore's retail sales (-5.9% year-over-year versus -5.0% forecast, -7.7% last).
The S&P 500 futures trade higher by 0.2%.
Asian markets ended higher across the board with Japan's Nikkei (+2.0%) pacing the advance. The index closed at its highest level since late May while USDJPY climbed above 100.00. Elsewhere, China's Shanghai Composite posted a solid gain (+1.7%) following the release of reform plans from the latest plenary session. However, many of the reforms mentioned—like loosening of the one-child policy—have been discussed in recent months. Regional economic data was limited to Hong Kong's GDP (+0.5% quarter-over-quarter versus 0.8% expected, 0.8% prior) and Singapore's retail sales (-5.9% year-over-year versus -5.0% forecast, -7.7% last).
·
In Japan, the Nikkei closed higher by 2.0% after overtaking the 15,000
level. Financials outperformed as Dai-ichi Life Insurance and Nomura Holdings
gained 6.6% and 4.8%, respectively. Nippon Paper Industries was the weakest
performer, down 3.0%.
·
Hong Kong's Hang Seng advanced 1.7%. Consumer names finished among the leaders
as Hengan International Group gained 3.5% and Li & Fung jumped 4.2%.
·
In China, the Shanghai Composite gained 1.7% with financials providing
support. China Vanke climbed 2.5%.
Core European indices hold modest
gains while Italy's MIB (-0.5%) underperforms amid reports the country has
received a warning from the European Union regarding its excessive debt load.
Canadian rating agency DBRS also weighed in, saying it will conduct a review of
Italian debt in about six months. Investors received a handful of economic data
points. Eurozone CPI slipped 0.1% month-over-month (0.5% prior) while the
year-over-year reading rose 0.7% (0.7% prior); both readings met expectations.
Core CPI was unchanged month-over-month (0.7% last) while the year-over-year
reading came in at 0.8%, as expected (1.0% prior). Elsewhere, Italy's trade
surplus narrowed to EUR0.79 billion from EUR1.07 billion (EUR1.63 billion
expected) while its EU trade surplus narrowed to EUR0.47 billion from EUR0.51
billion.
·
In France, the CAC sports a modest gain of 0.3% as media and telecom names
outperform. Publicis Groupe is higher by 2.7% and Vivendi trades up 3.5%.
Defense contractors lag as EADS and Safran hold respective losses of 0.8% and
3.8%.
·
Germany's DAX trades higher by 0.3%. Deutsche Lufthansa leads with a gain of
2.7%. Financials lag as Muenchener Re trades lower by 0.3% and Deutsche Bank is
little changed.
·
Great Britain's FTSE trades up 0.4% as energy companies lead. Royal Dutch Shell
and Tullow Oil are both up near 1.5%. Vedanta Resources lags with a loss of
6.5%.
·
Italy's MIB is lower by 0.5%. Mediaset (-2.8%), Pirelli (-2.0%), and BMPS
(-2.3%) are among the laggards. Salvatore Ferragamo outperforms with a gain of
7.5%.
Market Internals
Market Internals -Technical-
The Dow closed up 85 (+0.54%) at 15962, the S&P 500 closed up 8 (+0.42%) at 1798, and the Nasdaq closed up 13 (+0.33%) at 3986. Action came on mixed volume (NYSE 731 mln vs. avg. of 796; NASDAQ 1842 mln vs. avg. of 1778), with advancers outpacing decliners (NYSE 2007/1047, NASDAQ 1528/1027) and new highs outpacing new lows(NYSE 236/17, NASDAQ 182/37).
Relative Strength:
China 25 Index-FXI +4.39%, India-INP +4.32%, Coffee-JO +3.38%, Lithium-LIT +2.92%, South Korea-EWY +2.64%, Asia-AAXJ +2.17%, Cocoa-NIB +2.11%, Social Media-SOCL +1.99%, Emerging Markets-EEM +1.91%, Biotechnology-XBI +1.76%.
Relative Weakness:
Grains-JJG -1.64%, Gold Miners-GDX -1.63%, Corn-CORN -1.35%, Junior Gold Miners-GDXJ -1.32%, Volatility-VXX -1.28%, Greece-GREK -1.2%, Peru-EPU -0.58%, Japanese Yen-FXY -0.24%.
Leaders and Laggards
Technical Updates
Commentaries
Closing Market Summary: S&P 500
Books Sixth Consecutive Weekly Advance
Equities registered modest gains as the S&P 500 added 0.4%, registering its sixth consecutive weekly gain. The benchmark index spent the bulk of today's quiet session inside of a four-point range until the now-familiar final-hour rally sent the index to a fresh nominal record high of 1798.18. The Dow Jones Industrial Average (+0.5%) outperformed as all but five components finished in positive territory.
All ten sectors registered gains with energy (+0.7%) and materials (+0.6%) ending in the lead. The energy sector received support from Exxon Mobil (XOM 95.27, +2.05), which rallied 2.2% after Berkshire Hathaway disclosed a 40.1 million share stake in the largest sector component. On a related note, crude oil ended little changed at $93.82/bbl after spending the entire session near its flat line.
Meanwhile, the other commodity-related sector, materials, was underpinned by steelmakers as the Market Vectors Steel ETF (SLX 49.04, +0.49) gained 1.0%. Similar to crude oil, the underlying commodities ended little changed. Gold futures added $1.00 to $1287.50/ozt while copper futures ticked up one cent to $3.1715/lb.
Other cyclical sectors were more of a mixed bag as financials (+0.5%) outperformed while consumer discretionary (+0.3%), industrials (+0.3%), and technology (+0.3%) lagged.
Speaking of technology, the tech-heavy Nasdaq (+0.3%) underperformed as participants displayed limited buying interest in some momentum names like Facebook (FB 49.01, +0.02), Priceline.com (PCLN 1139.53, +2.09), and Tesla (TSLA 135.45, -2.15). In addition, the largest Nasdaq component, Apple (AAPL 524.99, -3.17) lost 0.6%.
With regard to countercyclical sectors, consumer staples (+0.2%) underperformed while health care (+0.6%), utilities (+0.6%), and telecom services (+0.5%) ended ahead of the broader market.
Treasuries registered modest losses as the 10-yr yield ticked up one basis point to 2.70%.
Light volume has been a recurring theme throughout the week, but today's options expiration prevented another below-average finish as just under 800 million shares changed hands on the floor of the New York Stock Exchange.
On the economic front, wholesale inventories increased 0.4% in September after increasing an upwardly revised 0.8% (from 0.5%) in August (Briefing.com consensus +0.3%). The strong gain in wholesale inventories in September, along with the large upward revision to August, will likely result in a sizable upward revision to third quarter GDP. The Bureau of Economic Analysis assumed that wholesale inventories fell 0.1% in September, which was obviously well below what actually occurred.
Export prices, excluding agriculture, ticked down 0.4% in October after increasing 0.3% in the prior reading. Excluding oil, import prices were unchanged, which followed last month's uptick of 0.2%.
Separately, industrial production levels fell 0.1% in October after increasing an upwardly revised 0.7% (from 0.6%) in September (Briefing.com consensus +0.1%). All in all, industrial production held up well in October considering the dire predictions that were associated with the government shutdown. In fact, the government shutdown seemed to have no negative effects on the entire industry.
The contraction in industrial production can be completely attributed to normal and cyclical fluctuations in utilities and mining. Utilities production dropped -1.1%, but that type of decline was expected following an unusually strong September (4.5%) gain. Mining production fell 1.6%, which, again, was a normal pullback after six consecutive months of gains.
Lastly, the Empire Manufacturing Survey for November registered a reading of -2.2, which was down from the prior month's reading of 1.5. Economists polled by Briefing.com expected the survey to improve to 4.3.
On Monday, September net long-term TIC flows and the November NAHB Housing Market Index will be released at 9:00 ET and 10:00 ET, respectively.
Equities registered modest gains as the S&P 500 added 0.4%, registering its sixth consecutive weekly gain. The benchmark index spent the bulk of today's quiet session inside of a four-point range until the now-familiar final-hour rally sent the index to a fresh nominal record high of 1798.18. The Dow Jones Industrial Average (+0.5%) outperformed as all but five components finished in positive territory.
All ten sectors registered gains with energy (+0.7%) and materials (+0.6%) ending in the lead. The energy sector received support from Exxon Mobil (XOM 95.27, +2.05), which rallied 2.2% after Berkshire Hathaway disclosed a 40.1 million share stake in the largest sector component. On a related note, crude oil ended little changed at $93.82/bbl after spending the entire session near its flat line.
Meanwhile, the other commodity-related sector, materials, was underpinned by steelmakers as the Market Vectors Steel ETF (SLX 49.04, +0.49) gained 1.0%. Similar to crude oil, the underlying commodities ended little changed. Gold futures added $1.00 to $1287.50/ozt while copper futures ticked up one cent to $3.1715/lb.
Other cyclical sectors were more of a mixed bag as financials (+0.5%) outperformed while consumer discretionary (+0.3%), industrials (+0.3%), and technology (+0.3%) lagged.
Speaking of technology, the tech-heavy Nasdaq (+0.3%) underperformed as participants displayed limited buying interest in some momentum names like Facebook (FB 49.01, +0.02), Priceline.com (PCLN 1139.53, +2.09), and Tesla (TSLA 135.45, -2.15). In addition, the largest Nasdaq component, Apple (AAPL 524.99, -3.17) lost 0.6%.
With regard to countercyclical sectors, consumer staples (+0.2%) underperformed while health care (+0.6%), utilities (+0.6%), and telecom services (+0.5%) ended ahead of the broader market.
Treasuries registered modest losses as the 10-yr yield ticked up one basis point to 2.70%.
Light volume has been a recurring theme throughout the week, but today's options expiration prevented another below-average finish as just under 800 million shares changed hands on the floor of the New York Stock Exchange.
On the economic front, wholesale inventories increased 0.4% in September after increasing an upwardly revised 0.8% (from 0.5%) in August (Briefing.com consensus +0.3%). The strong gain in wholesale inventories in September, along with the large upward revision to August, will likely result in a sizable upward revision to third quarter GDP. The Bureau of Economic Analysis assumed that wholesale inventories fell 0.1% in September, which was obviously well below what actually occurred.
Export prices, excluding agriculture, ticked down 0.4% in October after increasing 0.3% in the prior reading. Excluding oil, import prices were unchanged, which followed last month's uptick of 0.2%.
Separately, industrial production levels fell 0.1% in October after increasing an upwardly revised 0.7% (from 0.6%) in September (Briefing.com consensus +0.1%). All in all, industrial production held up well in October considering the dire predictions that were associated with the government shutdown. In fact, the government shutdown seemed to have no negative effects on the entire industry.
The contraction in industrial production can be completely attributed to normal and cyclical fluctuations in utilities and mining. Utilities production dropped -1.1%, but that type of decline was expected following an unusually strong September (4.5%) gain. Mining production fell 1.6%, which, again, was a normal pullback after six consecutive months of gains.
Lastly, the Empire Manufacturing Survey for November registered a reading of -2.2, which was down from the prior month's reading of 1.5. Economists polled by Briefing.com expected the survey to improve to 4.3.
On Monday, September net long-term TIC flows and the November NAHB Housing Market Index will be released at 9:00 ET and 10:00 ET, respectively.
·
Nasdaq +32.0% YTD
·
Russell 2000 +31.4% YTD
·
S&P 500 +26.1% YTD
·
DJIA +21.8% YTD
Commodities
Closing Commodities: Crude Oil Ends
The Week 0.8% Lower, Gold Gains 0.2%
·
Precious metals erased earlier losses, gaining support from a
weaker dollar index.
·
Dec gold rose from a session low of $1282.10 per ounce and broke
into positive territory in early morning pit trade. It settled 0.1% higher at
$1287.50 per ounce, booking a slight 0.2% gain for the week.
·
Dec silver came off its session low of $20.63 per ounce set in
early morning pit trade and spent the remainder of the session chopping around
near the breakeven level. It eventually settled with a 0.1% gain at $20.74 per
ounce, bringing losses for the week to 2.7%.
·
Dec crude oil rose to a session high of $94.55 per barrel in early
morning floor action but was unable to hold the momentum. Prices slipped back
towards the unchanged line and chopped around near that level for the remainder
of the session. The energy component settled just 0.1% higher at $93.82 per
barrel, booking a 0.8% loss for the week.
·
Dec natural gas, on the other hand, trended higher today,
advancing to a session high of $3.67 per MMBtu. It lifted from its session low
of $3.59 per MMBtu set moments after floor trade opened and settled with a 1.7%
gain at $3.66 per MMBtu. Today's advance brought gains for the week to 2.8%.
NYMEX
Energy Closing Prices
Dec crude oil rose $0.07 to $93.82/barrel
·
Crude oil rose to a session high of $94.55 in early morning pit
trade but was unable to hold the momentum. Prices dropped back down near the
unchanged level where they chopped around for the remainder of the session. The
energy component settled just 0.1% higher, booking a 0.8% loss for the
week.
Dec natural gas rose 6 cents to $3.66/MMBtu
·
Natural gas, on the other hand, trended higher today. It lifted
from its session low of $3.59 set moments after floor trade opened and settled
just below its session high of $3.67, or 1.7% higher. Today's advance brought
gains for the week to 2.8%.
Dec heating oil rose 1 cent to $2.94/gallon
Dec
RBOB gasoline fell 2 cents to $2.66/gallon
CBOT
Agriculture and Ethanol/ICE Sugar Closing Prices
·
Dec corn fell 4 cents to $4.22/bushel
·
Dec wheat fell 1 cent to $6.44/bushel
·
Jan soybeans fell 34 cents to $12.80/bushel
·
Dec ethanol fell 1 cent to $1.77/gallon
·
Jan sugar (#16 (U.S.)) fell 0.01 of a penny to 20.89cents/lbs
COMEX
Metals Closing Prices
Dec gold rose $1.00 to $1287.50/ounce
·
Gold erased earlier losses as it gained support from a weaker
dollar index. The yellow metal rose from a session low of $1282.10 and broke
into positive territory in early morning pit trade. It settled 0.1% higher,
booking a slight 0.2% gain for the week.
Dec silver rose $0.03 to $20.74/ounce
·
Silver came off its session low of $20.63 set in early morning pit
trade and spent the remainder of the session chopping around the breakeven
level. It eventually settled with a slight 0.1% gain, bringing losses for the
week to 2.7%.
Dec
copper rose 1 cent to $3.17/lb
Treasuries
Treasuries Fade as Stocks Continue
to Rally
The force was against the Treasury market on Friday and that force was a rising stock market that is looking every bit the Jedi master these days with its levitating ways and manipulation of the mind to interpret bad news as good news because it means QE will go on.
While a continuation of asset purchases will lend support to the Treasury market, it is catapulting buying interest in stocks as investors seek higher rates of return. To that end, the S&P 500 is on the cusp of recording its sixth straight wining week and is up 8.1% over the last three months alone.
The seemingly unstoppable force weighed on Treasuries since it wasn't a day of risk aversion despite a spate of economic data that wasn't necessarily indicative of an economy gaining a good bit of upside momentum.
The force was against the Treasury market on Friday and that force was a rising stock market that is looking every bit the Jedi master these days with its levitating ways and manipulation of the mind to interpret bad news as good news because it means QE will go on.
While a continuation of asset purchases will lend support to the Treasury market, it is catapulting buying interest in stocks as investors seek higher rates of return. To that end, the S&P 500 is on the cusp of recording its sixth straight wining week and is up 8.1% over the last three months alone.
The seemingly unstoppable force weighed on Treasuries since it wasn't a day of risk aversion despite a spate of economic data that wasn't necessarily indicative of an economy gaining a good bit of upside momentum.
·
The Empire Manufacturing Index reflected a period of contraction
in November with a print of -2.2. That was weaker than the Briefing.com
consensus estimate of 4.3 and the 1.5 reading for October.
·
Export prices, excluding agriculture, declined 0.4% in October.
Import prices, excluding oil, were flat.
·
Industrial production declined 0.1% in October, led by a downturn
in the utilities and mining groups. Manufacturing output rose 0.3%. Total
capacity utilization slipped to 78.1% from 78.3%.
·
Wholesale Inventories increased by 0.4% in September. This was
actually some good economic news that will lead to an upward revision to the
inventory contribution for Q3 GDP, but a pullback in inventory growth is
expected to weigh in the fourth quarter.
Treasuries saw some seesaw trading
action around the data, but never staged a breakout or a breakdown. Instead
they held in a fairly narrow range for most of the session with the front end
of the curve holding steady and the back end of the curve getting pinched a bit
by sellers. The 10-yr note was down 3 ticks. Despite today's modest loss,
the yield on the 10-yr note actually dropped by five basis points on the week
to 2.70%.
The Week Ahead
The Week Ahead
·
Monday's data includes Net Long-Term TIC Flows (9) and the NAHB
Housing Market Index (10). Fed speak begins for the week with NY's Dudley in
Flushing, NY to speak on national and regional economic conditions (12:15);
Philly's Plosser on his home turf discussing the economy (13:30); and Minny's
Kocherlakota in familiar surroundings speaking on "Too Big to Fail: the
Need for Metrics" (19:45).
·
Tuesday's data is limited to the Employment Cost Index (8:30).
Chicago's Evans will be in Chicago, IL, discussing current economic conditions
and monetary policy (13:15).
·
Data picks up on Wednesday with the weekly MBA Mortgage Index (7),
retail sales, retail sales ex-auto, CPI, core CPI (8:30), existing home sales,
business inventories (10), and the FOMC minutes (14). STL's Bullard will be in
Chicago, IL to take part in a discussion on monetary policy and the economy as
part of the Bloomberg Business Summit.
·
Data remains heavy on Thursday with initial and continuing claims,
PPI, core PPI (8:30), and Philly Fed (10). Fed speak concludes for the week
with Richmond's Lacker giving his economic outlook in Asheboro, NC (12:30) and
STL's Bullard in Rogers, AR to speak on monetary policy and the economy
(13).
·
Friday will bring only the JOLTS -- Job Openings report (10).
On other news....
Currencies
Weekly Analysis
Week 38
Technical Updates
Briefing's Commentaries
Week in Review: Another Week,
Another Advance
Equities began the week on a quiet note as the S&P 500 added just over a point (+1.27) after spending the entire session inside of a five-point range. Excluding the first 30 minutes of action, the benchmark index was confined to a two-point range as many participants elected to forego the session. With the bond market closed for Veterans Day and no market-moving economic or company news, equity indices drifted near their flat lines throughout the day. Small caps outperformed the broader market, but the Russell 2000's gain was limited to just 0.1%. Meanwhile, the S&P crept higher as six of ten sectors registered gains. Financials (+0.1%) and health care (+0.2%) paced the slight advance, but only the health care sector was able to end among the leaders.
On Tuesday, the S&P 500 shed 0.2% after spending the entire session in negative territory. The index sold off steadily through the first four hours of action, but managed to regain most of its losses by the close. Meanwhile, the Nasdaq ended flat as the relative strength of technology (+0.3%) underpinned the index. The tech sector was one of just two advancers among cyclical groups as top components provided leadership. Chipmakers also rallied with the PHLX Semiconductor Index adding 0.6%.
Wednesday saw the major averages settle on their best levels of the session despite showing some early weakness. The S&P 500 rose 0.4% while the Nasdaq outperformed with an advance of 0.7%. The tech-heavy Nasdaq paced the rebound as momentum names provided support after suffering group-wide weakness last week. Facebook,LinkedIn (LNKD 231.06, +9.62), and Priceline.com gained between 2.3% and 5.4%. Tesla also displayed intraday strength, but surrendered the bulk of its gain into the close amid reports of fire department activity at the company's factory in California.
On Thursday, the S&P 500 added 0.5%, but all eyes were focused on Washington where Janet Yellen appeared in front of the Senate Banking Committee for her confirmation hearing. The hearing did not generate any bombshells, and Ms. Yellen's comments strengthened the belief that the central bank will not be in any hurry to reduce the pace of its asset purchases. On that note, the Fed Chair nominee said:
Equities began the week on a quiet note as the S&P 500 added just over a point (+1.27) after spending the entire session inside of a five-point range. Excluding the first 30 minutes of action, the benchmark index was confined to a two-point range as many participants elected to forego the session. With the bond market closed for Veterans Day and no market-moving economic or company news, equity indices drifted near their flat lines throughout the day. Small caps outperformed the broader market, but the Russell 2000's gain was limited to just 0.1%. Meanwhile, the S&P crept higher as six of ten sectors registered gains. Financials (+0.1%) and health care (+0.2%) paced the slight advance, but only the health care sector was able to end among the leaders.
On Tuesday, the S&P 500 shed 0.2% after spending the entire session in negative territory. The index sold off steadily through the first four hours of action, but managed to regain most of its losses by the close. Meanwhile, the Nasdaq ended flat as the relative strength of technology (+0.3%) underpinned the index. The tech sector was one of just two advancers among cyclical groups as top components provided leadership. Chipmakers also rallied with the PHLX Semiconductor Index adding 0.6%.
Wednesday saw the major averages settle on their best levels of the session despite showing some early weakness. The S&P 500 rose 0.4% while the Nasdaq outperformed with an advance of 0.7%. The tech-heavy Nasdaq paced the rebound as momentum names provided support after suffering group-wide weakness last week. Facebook,LinkedIn (LNKD 231.06, +9.62), and Priceline.com gained between 2.3% and 5.4%. Tesla also displayed intraday strength, but surrendered the bulk of its gain into the close amid reports of fire department activity at the company's factory in California.
On Thursday, the S&P 500 added 0.5%, but all eyes were focused on Washington where Janet Yellen appeared in front of the Senate Banking Committee for her confirmation hearing. The hearing did not generate any bombshells, and Ms. Yellen's comments strengthened the belief that the central bank will not be in any hurry to reduce the pace of its asset purchases. On that note, the Fed Chair nominee said:
·
The benefits of bond buying exceed the costs
·
The Fed is apt to maintain accommodative policy for some time
after the asset purchase program ends
·
QE cannot go on forever, but there is no set time for when the Fed
will reduce the pace of its asset purchases
·
It is important not to remove support while the recovery is still
fragile
·
There doesn't appear to be a bubble in stock prices when
considering the level of P/E ratios and the equity risk premium
Next Week In View
Economic Commentaries
Economic Summary: IP and Empire
Manufacturing show unexpected declines; Dudley to speak Monday at 12:15
Economic Data Summary:
Economic Data Summary:
·
November Empire Manufacturing -2.2 vs Briefing.com consensus of
4.3; October was 1.5
·
October Export Prices Ex-Ag -0.4% vs Briefing.com consensus of ;
September was 0.3%
·
October Import Prices Ex-Oil 0.0% vs Briefing.com consensus of ;
September was 0.1%
·
October Industrial Production -0.1% vs Briefing.com consensus of
0.1%; September was 0.6%
o The contraction in
industrial production can be completely attributed to normal and cyclical
fluctuations in utilities and mining. Utilities production dropped -1.1%, but
that type of decline was expected following an unusually strong September
(4.5%) gain. Mining production fell 1.6%, which again was a normal pullback
after six consecutive months of gains. Manufacturing production showed no signs
of weakness from the government shutdown. Production levels increased 0.3%
after increasing 0.1% in September. That gain was in-line with the elevated
readings from the regional Federal Reserve manufacturing surveys and the
national ISM report. T
·
October Capacity Utilization 78.1% vs Briefing.com consensus of
78.3; September was 78.3%
·
September Wholesale Inventories -0.4% vs Briefing.com consensus of
0.3%; August was 0.5%
o The BEA assumed that
wholesale inventories fell 0.1% in September, which was obviously well below
what actually occurred. Durable wholesale inventories increased 0.3% in
September following a 0.8% increase in August. Big gains were reported in
machinery (1.6%), professional equipment (2.3%), and computer equipment
(5.6%).
Upcoming Economic Data:
·
September Net Long Term TIC Flows due out Monday at 9:00
(Briefing.com consensus of ; August was -$8.9 mln)
·
November NAHB Housing Market Index due out Monday at 10:00
(Briefing.com consensus of ; October was 55)
Upcoming Fed/Treasury Events:
·
NY Fed President Bill Dudley (voting FOMC member, typically
dovish) to speak Monday at 12:15
·
Philadelphia Fed President Charles Plosser (2014 voter, hawkish)
to speak Monday at 13:30
Other International Events of
Interest
·
Eurozone CPI slipped 0.1% month-over-month (0.5% prior) while the
year-over-year reading rose 0.7% (0.7% prior); both readings met expectations.
Core CPI was unchanged month-over-month (0.7% last) while the year-over-year
reading came in at 0.8%, as expected (1.0% prior).
Jason's Commentaries
Market carried on its momentum from its bullish sentiment after Yellen's testimony. While we are having the FOMC minutes next Wednesday, market might be expecting it to be an non event as Yellen is unlikely to produce a different statement that her testimony. Volumes were slightly higher as it's expiration Friday. Internals were pointing toward a bullish convergence and the S&P500 broke a new high once again. I'm expecting the market to continue its bullish momentum in the short term.
While i'm in Hong Kong, i'll do my best to do the DMA. Have fun and stay safe in the market.
Market Call: FLAT
Date: 18 Nov 2013
No comments:
Post a Comment