12:00 ET Dow +128, Nasdaq +20, S&P +12.25: [BRIEFING.COM] After gapping down on the open, the markets have taken a turn for
the positive. A set of economic data which was largely in line with expectations has been driving market activity to this point in the day. The
Consumer Price Index (CPI) for April rose 0.3% which was slightly weaker than consensus expectations. The CPI number suggests
inflation continues to be under control which gives the Fed a green light to continue with subsequent rate cuts should it deem them necessary.
Separately, housing starts rose 1.5% to a 1.609 million unit rate in April which was also roughly in line with expectations. This number
serves as additional support to those contending consumer strength remains relatively intact... The Dow has been testing key resistance at
11,000 which is a dynamic traders will be watching throughout the day. The blue chip index has not closed over this key level since
September 14, 2000 and a break above may be read as the initiation of a trend by market technicians. Market internals are favorable on
both the NYSE and the Nasdaq and though total volume traded is on the light side it is somewhat stronger than we've seen in recent
sessions... Precious metals related equities are a mover of note as the XAU is posting a 4.8% intraday gain. The move appears to be
driven by enthusiasm surrounding yesterday's UK gold auction. The long bond has been volatile as well though it currently trades well off its
intraday high. It's worth noting that as a general rule, the end of a bear markets in equities is preceded by a rally in both bonds and equities.
DJTA +0.1%... DJUA +0.3%... SOX +1.1%... XOI +0.5%... BTK +4.3%... Nasdaq 100 +1.9%... S&P Midcap 400 +0.8%... Russell
2000 +0.6%... NYSE Adv/Dec 1783/1103... Nasdaq Adv/Dec 1811/1570.
11:30 ET Dow +143, Nasdaq +28, S&P +15.03: [BRIEFING.COM] The Dow has just crossed over the 11,000 threshold. This is
important as the index has not closed over this key level since September 14, 2000. From a technical perspective, traders will be
watching intraday strength on the index and its ability to maintain a posture over 11,000 could lead to additional buy interest/short covering
as the day wears on. Breaks over resistance levels are commonly read as initiations of trends and traders tend to be wary as indices hover
near key levels. On an intraday basis, the current rally attempt is taking on the look of broad based buying in terms of sector participation.
DJTA +0.1%... DJUA +0.3%... SOX +1.4%... XOI +0.7%... BTK +4.4%... Nasdaq 100 +2.3%... S&P Midcap 400 +0.8%... Russell
2000 +0.6%... NYSE Adv/Dec 1725/1053... Nasdaq Adv/Dec 1763/1502.
11:00 ET Dow +109, Nasdaq +20, S&P +10.80: [BRIEFING.COM] The markets have turned around to a positive bias following
weakness on the open. Market internals have now shifted to carry a bullish bias on both the NYSE and the Nasdaq. Nonetheless, total
volume traded in the markets is once again on the light side which may mitgate the importance of this recent move. With lackluster summer
trading sessions at hand, it's difficult to project relative differences in total volume. One factor supportive of the current rally is the relative
strength in semiconductor issues. The group has been hit with negative news since yesterday's session (AMAT earnings, communications
chip downgrades) yet is faring reasonably well to this point in today's session (SOX +0.7%). Trading higher on negative news is a bottoming
indication necessary to begin another leg higher in equities. The Dow is currently pushing 11,000. DJTA -0.1%... DJUA +0.3%... SOX
0.4%... XOI +0.7%... BTK +3.5%... Nasdaq 100 +1.5%... S&P Midcap 400 +0.5%... Russell 2000 +0.3%... NYSE Adv/Dec
1656/1059... Nasdaq Adv/Dec 1647/1484.
10:35 ET Dow +13, Nasdaq +3, S&P +0.13: [BRIEFING.COM] The major market averages are now posting modest gains. While tech
is generally interesting in terms of market volatility, it has nothing on gold and the long bond this morning. The 30-year bond has bounced
around in recent sessions and is +30/32 intraday which has brought the yield down to 5.837%. Gold-related issues continue to exhibit
strength with the XAU posting an early 4.5% gain. As far as the catalyst on precious metals, it looks as if there's enthusiasm surrounding
yesterday's UK gold auction. DJTA -0.3%... DJUA -0.2%... SOX -0.4%... XOI +0.3%... BTK +1.2%... Nasdaq 100 -0.4%... S&P
Midcap 400 -0.3%... Russell 2000 -0.3%... NYSE Adv/Dec 1193/1391... Nasdaq Adv/Dec 1200/1745.
10:05 ET Dow -37, Nasdaq -17, S&P -5.24: [BRIEFING.COM] On the back of largely expected economic data the markets gapped
down at the open but have recovered from opening lows. The Consumer Price Index for April rose 0.3% which was slightly weaker than
consensus expectations. This number is positive for those advocating loose monetary policy as it suggests inflation continues to be relatively
tame. Separately, housing starts rose 1.5% to a 1.609 mln unit rate in April which was roughly in line with expectations. This represents yet
another data point supportive of consumer strength which has been commonly promoted as the best source for a potential turn in the
economy. The Nasdaq managed to hold its first test of near-term support over 2050. On both the NYSE and the Nasdaq market internals
have taken a notable shift for the better since opening levels. While internals on both markets still generate a mildly bearish read,
the improvement has altered the markets' early outlook. DJTA -0.5%... DJUA -0.1%... SOX +0.5%... XOI +0.4%... BTK -0.2%...
Nasdaq 100 -0.3%... S&P Midcap 400 -0.3%... Russell 2000 -0.3%... NYSE Adv/Dec 1059/1264... Nasdaq Adv/Dec 1060/1585.
09:45 ET Dow -34, Nasdaq -15, S&P -4.25: [BRIEFING.COM] Not surprisingly, the markets have opened lower across the board.
Nonetheless, pockets of strength are evident in oil-related issues, drugs and utilities. Gold is particularly strong in the early going with the
XAU posting a 3.6% gain. Semiconductors are mildly weaker to start the day though not near what might be expected given the recent news
in the sector. The SOX is posting an early 0.1% loss. On the broader markets, financials and retail are experiencing sell pressure and the
weakness in technology appears to be selective.
09:15 ET: [BRIEFING.COM] We still have a negative bias in pre-market trading. S&P futures at 1247, trade six points under fair value
while the Nasdaq 100 pre-market indicator is -20.2. Regarding Cisco Systems (CSCO 18.74), there have been rumors on European
trading floors that Cisco may announce a cut in its order book. These rumors have been reported by both Bloomberg TV and BridgeNews.
There is no confirmation of these rumors and they are unlikely to be true given that we're only two weeks into Cisco's July quarter.
Separately, communications chip issues are trading lower on the back of a Goldman Sachs downgrade to the group. The firm has
downgraded the following names to Market Outperform from Trading Buy: Applied Micro Circuits (AMCC 22.08) , PMC Sierra (PMCS
35.56) and Vitesse Semiconductor (VTSS 29.46). Goldman believes more adverse news flow out of sector is likely over the next six weeks.
08:45 ET: [BRIEFING.COM] The markets carry a decidedly negative bias in futures trading. S&P futures at 1249 trade four points below
fair value while the Nasdaq 100 pre-market indicator is -21.2. Two economic releases have neglected to change the tone of the market.
The Consumer Price Index for April rose 0.3% which was slightly weaker than consensus expectations. Housing starts rose 1.5% to a
1.609 mln unit rate in April which was roughly in line with expectations. The relatively tame CPI is supportive of an easing monetary policy
while the strong housing data suggest continued strength in the consumer side of the economy.
08:35 ET: [BRIEFING.COM] S&P futures -7.30 or 3 points below fair value; Nasdaq pre-market indicator -23.7. April CPI rises 0.3%,
compared to 0.4% consensus. The Core CPI (ex food and energy) rose 0.2%, in line with expectations. Housing starts rose 1.5% to a
1.609 mln rate, slightly above the 1.6 mln rate anticipated by economists. Modest uptick in the futures on back of numbers.
07:35 ET: [BRIEFING.COM] This morning's fair value figures -- S&P 500 fair value: 1253; closed 5 pts above fair value. Nasdaq 100 fair
value: 1803; closed 14 pts above fair value. Current indications: S&P 500 futures are -9.0, or 4 pts below fair value. Nasdaq 100 is -42.5,
or 28.5 pts below fair value... Tech sector under pressure this morning after TSIX slashed capex plans by approx. $1.5 bln; a major call on
the communications chip space also weighing on tech.
06:17 ET: [BRIEFING.COM] S&P futures trading at 1248.20, 4.8 points below fair value, Nasdaq 100 futures trading at 1782, 21.0
points below fair value. The 30-year bond is up 20 ticks at 5.862%. The dollar is mixed, weaker against the euro, but stronger against the
yen.
06:16 ET: FTSE -0.75%, DAX -1.58%: [BRIEFING.COM] European stocks hit by another tech underperformance. Most bourses
down over 1% on concerns that central banks may be ready to let up on the monetary accelerator. ASML weighed down following the
decision by Goldman Sachs to downgrade the company’s shares. Not to be outdone, UBS cuts its 2001 earnings forecast for ASML by
more than 30%. Media companies have also suffered from concerns about declining ad revenues.
06:15 ET Nikkei -2.56%, Hang Seng +0.65%: [BRIEFING.COM] Asian stocks mostly lower in response to the subdued reaction of
US stocks to the Fed’s 50 bp rate cut. Japan led the way lower with the Nikkei off more than 2.5%. Tech issues sold off on the back of
disappointing earnings from electronic component maker Murata Manufacturing Co. Shares in Taiwan were dragged down by a 1.7%
decline in Taiwan Semiconductor Manufacturing, which itself was hit by weak guidance from Applied Materials. Hong Kong was one of the
few bright spots with China-related shares outperforming, while Korea’s Kospi lost 1.5% on heavy foreign selling in the futures market. |
