Good morning. Happy Wednesday. Happy Fed Day.
The Asian/Pacific markets closed with a lean to the upside, but movement was small. China bounced 3.4%. Hong Kong, Australia, India and New Zealand also did well. Europe is currently mostly up, but movement there is also small. Norway, Switzerland, Belgium, London, Poland and Turkey are up. Italy, Spain and Portugal are down. Futures here in the States point towards an up open for the cash market.
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The dollar is up slightly. Oil is down, copper is up. Gold and silver are down. Bonds are down.
We got a nice bounce yesterday. A combination of five consecutive down days (matching this year’s high)…indicators at extreme oversold lows…very bearish sentiment…an approaching FOMC meeting…and a day (Monday) that wasn’t as bad as it seemed to be or could have been. All this, with knowledge that the biggest up days occur within downtrends, set the stage for a rally…or at least a bounce. We don’t know how long it’ll last or how far it’ll travel, but it was pretty easy to see coming…and if you didn’t see it coming, we got some very good intraday buy signals at the end of the first hour of trading yesterday.
Going forward you know the routine. If the market continues to move up we’ll watch the breadth indicators to tell us the staying power of the move. The internals should improve. The AD line, the bullish percent charts, the TICK, the percentage of stocks above certain moving averages and others…they need to improve…they need to tell us strength is broad-based and not concentrated in a small number of leaders. If we get such improvement, this bounce can turn into a full-blown rally. If not, it’ll be more of the same up and down movement.
The Fed meets today. This is a more important meeting than the previous couple. The debate is heating up…raise in September…raise at the meeting after…raise once or twice…raise in 2016. I’m not sure it entirely matters, but Wall St. would like to know.
Stock headlines from barchart.com…
Twitter (TWTR +5.30%) is down -11% in overnight trading after saying its user growth won’t improve until the company can reach a mass market
Yelp (YELP -0.65%) is down -18% overnight on its lower revenue guidance.
Positive earnings reports this morning include: Anthem (ANTM +1.78%) ($3.13 vs $2.70), International Paper (IP +2.89%) (0.97 vs 0.92), Northrop Grumman (NOC +0.48%) ((2.54 vs 2.33), Altria (MO +2.41%) (0.74 vs 0.71), WEC Energy Group (WEC +0.80%) (0.59 vs 0.56), Garmin (GRMN +1.61%) (0.72 vs 0.71), Hess (HES +3.42%) (-0.59 vs -0.71), General Dynamics (GD +1.32%) (2.27 vs 2.06), Humana (HUM +0.33%) (1.67 vs 1.63).
Negative earnings reports this morning include: Praxair (PX +3.18%) (1.45 vs 1.455), CBRE Group (CBG +1.02%) (0.42 vs 0.43), Henry Schein (HSIC +2.03%) (1.46 vs 1.462), American Tower (AMT +0.21%) (0.99 vs 1.14), Southern Company (SO +0.23%) (0.69 vs 0.70), Hospiri (HSP -0.13%) (0.81 vs 0.835).
On positive earnings news late yesterday, Buffalo Wild Wings (BWLD +1.61%) rallied 10%, Panera Bread (PNRA +1.62%) rallied 8%, Express Scripts (ESRX +1.41%) rallied +1.6%, and Sunpower (SPWR +2.19%) rallied by 1.5%.
On negative earnings news late yesterday, Yelp (YELP -0.65%) fell 16%, Akamai (AKAM +2.82%) fell 10%, and BlackBox (BBOX -2.11%) fell 4%.
Earnings and Economic Numbers from seekingalpha.com…
Today’s economic calendar:
7:00 MBA Mortgage Applications
10:00 Pending Home Sales
10:30 EIA Petroleum Inventories
11:30 Results of $15B, 2-Year FRN Auction
1:00 PM Results of $35B, 5-Year Note Auction
2:00 PM FOMC Announcement
Notable earnings before today’s open: ACCO, ADT, AMED, AMT, ANTM, APO, AVY, BAH, BDC, BEN, BGCP, BOKF, CARB, CBG, CDK, CFR, CHH, CLF, CRI, DATA, DIN, DORM, DXYN, ESIO, ETN, EVER, EXC, FDML, FLY, GCI, GD, GEL, GIB, GRA, GRMN, GT, GTI, HCBK, HES, HLT, HSIC, HSP, HTA, HUM, HUN, IP, IRT, JAH, JLL, LFUS, LVLT, MA, MDCO, MO, MTH, MTOR, MVIS, NOC, PAG, PCG, PX, Q, RES, ROK, ROL, SAIA, SLAB, SNCR, SO, SONS, SPIL, SPR, SPW, SSE, STNG, STRA, STRZA, TGI, TRI, UBSI, UMC, VNTV, WEC, WEX, WILN, WOOF
Notable earnings after today’s close: ACGL, AEGN, AEL, AEM, AFFX, ALGT, ANIK, AR, ARII, ARRS, ASGN, ASH, ATW, BANC, BAX, BKCC, BLKB, BXP, CAVM, CBL, CEMP, CGI, CHDN, CHMT, CLD, CMO, CMPR, CNO, CNW, CROX, CSGP, CW, CWT, CXO, DDR, DOX, DRE, DYAX, EHTH, ELY, EQIX, EQY, ESRT, ESV, EXR, FARO, FB, FBP, FICO, FISV, FMI, FNF, FOE, FORM, FORR, HLS, HOLX, HOS, HY, IPCM, ISIL, IXYS, KEG, KEX, KGC, KRA, KRG, KS, LNC, LOCK, LPSN, LRCX, MAA, MANT, MAR, MC, MCK, MDAS, MEOH, MET, MMLP, MTGE, MTW, MUR, NBIX, NE, NOW, NSIT, NTRI, NXPI, O, OGS, OI, ORLY, OTEX, PDM, PEGA, PEIX, PPC, PSA, PTC, PVA, QGEN, QUIK, RKUS, ROG, RRTS, SBAC, SCI, SCTY, SFLY, SGMO, SKX, SPRT, SSNC, SSS, STAA, SU, TAL, TER, THG, THRM, THRX, TILE, TTEK, UNM, VAR, VGR, VNDA, VRTX, WDC, WES, WFM, WGP, WLL, WMB, WMGI, WSTL, WTS, WYNN
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers