In economic news, durable goods orders surged back from last month's -13.1% decline to increase 9.9% in September. Ex-transportation durable goods rose 2.0%.
10-year yields are getting a bounce on the data, with yields reaching 1.81%.
It was another big night and morning for earnings reports. I haven't seen any big standouts the way CAT, etc. made the headlines. But there are certainly lots of sharp reactions in the stocks.
Stocks rising on earnings: BG, BIIB, ASPS, RS, RCL, DLX, COP, PCP, MCK, AKAM, SRCL, PG
Stocks falling on earnings: CAB, FFIV, CLF, SWI, MJN, SHW, DFT, FFIV, NOV, UA, JAH
Asian markets were mostly higher overnight. The Bank of Japan announced another round of stimulus to the tune of 400-700 billion JPY. The Nikkei rose 1.1%. But talks of fiscal package in China did little to boost their market, which fell -0.7%.
Europe is also higher this morning on the heels of a positive GDP report from the UK. GDP rose 1.0% in Q3, but likely got a boost from the Olympics which should fade next quarter.
The dollar is flattish, oil prices are flat near $85.75, and gold prices are higher to $1717. Copper prices are lower again, and are not trading as if China is rekindling growth.
Trading comment: The major indexes have not been able to muster much of a bounce the last couple of days, despite being short-term oversold. I think it is likely we will see a short-term bounce soon, but it will probably still be too soon to buy. I would prefer to wait for the market to pull back again after any bounce and see if it can find some firm support. That would be a better bottoming process from which to launch a more sustainable rally.
KAM Advisors has long positions in SRCL, PG
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