Yahoo Finance Today's buzz on the NYSE trading floor was clearly: "take 'em"
Runaway strength in the Yen softened the U.S. dollar, which in case you stopped paying attention, is good for U.S. multi-nationals
By Stephen Guilfoyle | @Sarge986
Good Afternoon,
How interesting is the day as it evolves? First, the "Ugly Stick" makes an appearance as the Bank of Japan does the sideways shuffle. Then, as the morning dragged on, it became obvious that Wall Street was going to buy the open—and why the heck not? Runaway strength in the Yen softened the U.S. dollar, which in case you stopped paying attention, is good for U.S. multi-nationals.
Then the earnings results poured in—and they were solid. AET, MO, BMY, CAH, F, MA, TWC, UPS, WM, and many more all had something common. They all showed year-over-year revenue growth in this awful macro-economic climate. They didn't just beat easily engineered expectations for earnings per share or revenue expectations but showed actual revenue growth. With S&P futures down 15 or so points well before the opening bell, the buzz on the NYSE trading floor was clearly: "Take 'em."
Six things to consider
1) We got our first look at Q1 GDP this morning, and the results were underwhelming. Guess Janet Yellen and the gang got a look at this before we did. I'm a nerd; I look at this stuff more closely than most. Going through the entire release number by number, I can truly say that there was no area within our economy that had me saying, "Okay, at least that was decent." Nothing was decent, unless barely growing at all is your idea of decent.
2) The Kansas City Fed Manufacturing Index showed us a -4 print today, joining Philadelphia and Dallas on the wrong side of zero. The ISM number, which really is the final verdict on manufacturing, is due Monday. Before we get there, you'll see the PCE price index tomorrow morning.
3) The S&P 500 (^GSPC) really did have trouble at the 2095 level. That said, the level has been pierced. This afternoon should let you know if that level is a pivot or actual support. The 2111 level to the upside is probably a "Bridge Too Far." We'll likely see a level develop between here and there. Should we see a technical failure, the rally point is at 2086, which worked like a charm once already today.
4) The alleged rotation may not be working today, but tech (XLT) and energy (XLE)—at least for now—have continued their recently inverse relationship.
5) The weakened dollar has strengthened gold, but there is absolutely no movement into utilities (XLU), Treasurys (^TNX), or the VIX (^VIX) at this time. The "Safety Dance" has been postponed. Advancers have a midday edge on decliners at the NYSE, and advancing volume has a 9:5 advantage on declining volume.
6) Health food for lunch and maybe a long run tonight. Who's in?
