The Morning Look
Market Update:
Stock futures are up ahead of Monday’s open as investors digest last week’s up and down action and wait for the next round of earnings to be released.
Gary’s Thoughts: Strong open. Market recognizes it was defended again Friday so back into the range on the open today. Financials, oils lead. Semis still strong but losing some momentum. Steel and other commodity names coming on. Airlines emerging. Big cap tech/internet good r/s but mostly sitting as earnings come out this week. That will tell the tale at least for the NDX this week.
Economic Calendar:
- Chicago Fed National Activity Index 8:30 AM ET
- William Dudley Speaks 9:00 AM ET
- James Bullard Speaks 9:05 AM ET
- PMI Manufacturing Index Flash 9:45 AM ET
- Charles Evans Speaks 1:30 PM ET
- Jerome Powell Speaks 1:45 PM ET
Highlights:
- Iraq Balks at Joining OPEC Cuts, Making Oil Output Deal Harder
Gary’s Thoughts: Not sure that will matter to the price. - Regulatory microscope lies ahead for AT&T and Time Warner
Gary’s Thoughts: There is a decent chance this runs into big roadblocks. Big discount on the buyout price as of this morning. This will take a good year to work through.
Yawn,, Yoda says, the market is fine here, but tightly trapped between a support which the banks will not allow the market to break, and a resistance which the market players do not want to push up thru…
A cry from the masses:
Q: Yoda,, lead us, what do we do ? … !
A: Yoda answers; consider commodities.
Yoda continues:
Commodities are sold off, and a river of money is still entering the markets by way of “the carry trade,” that money needs a home; and as the wise old man says, “if you cannot bust them down, and you cannot bust them up, you rotate the lagers…..”
Commodities are the lagers, and many are sold off.