Opening Market Commentary For 04-16-2013
Premarkets were up 0.50% as I ‘guessed’ they would be yesterday afternoon. I wrote, “if you jumped in prior to the close today, you might do well tomorrow. But don’t get greedy”. That would have made a nice scalp had you jumped in yesterday.
The markets opened up but still on shaky ground as far as I am concerned. Volume is moderate with spurts of green as the ever present ‘dippers’ jump in and keeping the markets from slipping back down. I can see more ‘up’ in the markets over the next week or so, but I am feeling more negative vibes than positive ones.
Today’s financial reporting is a good example of things do not look all that good.
Inflation at the consumer level fell 0.2% in March from February, compared to expectations of no change. Excluding the food and energy components, prices were up 0.1%, a slightly shallower rise than the 0.2% increase economists forecast. The headline reading climbed 1.5% from the year prior in the smallest year-to-year increase since July 2012.
Johnson & Johnson posted adjusted first-quarter earnings of $1.44 a share on revenues of $17.5 billion, topping expectations of $1.40 a share on $17.42 billion. Shares of the Dow component edged up in the premarket.
Coca-Cola unveiled adjusted first-quarter profits of 46 cents a share, topping estimates by a penny. Sales of $11.03 billion also beat expectations of $10.94 billion. Shares of the blue-chip beverage company rallied more than 2% in pre-market trading.
U.S. housing starts jumped 7% in March from February to an annualized 1.03 million-unit rate, easily beating expectations of 930,000. Permits dropped 3.9% for the month to an annualized rate of 902,000 units, falling short of forecasts of 940,000 units.
Goldman Sachs posted diluted, first-quarter earnings of $4.29 a share, compared to $3.92 in the same period in 2012. It wasn’t immediately clear whether the figure was comparable to estimates of $3.88 a share. Revenues of $10.09 billion topped expectations of $9.72 billion. The investment-banking giant’s shares rose 1% in the premarket.
The DOW at 10:15 is at 14690 up 92 or 0.63%.
The SP500 is at 1563 up 10 or 0.68%.
SPY is at 156.25 up 1 or 0.73%.
The $RUT is at 914.50 up 7 or 0.81%.
NASDAQ is at 3238 up 21 or 0.66%.
NASDAQ 100 is at 2815 up 18 or 0.65%. (A lot of analysts are currently watching the 100.)
The longer trend is up, the past months trend is bullish, the past 5 sessions have been bearish and the current bias is down.
WTI oil is trading between 86.05 and 86.66 today. The session bias is bullish and is currently trading up at 87.75.
Brent crude is trading between 98.00 and 100.30 today. The session bias is bearish and is currently trading down at 99.20.
Gold fell from 1496.25 earlier to 1327.10 and is currently trading down at 1377.85.
Dr. Copper is at 3.29 up from 3.20 earlier.
The US dollar is trading between 82.61 and 82.07 and is currently trading down at 82.12, the bias is currently negative.
** RRR = Risk Reward Ratio
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Written by Gary