Stock futures are packing on some weight as the pre-market session progresses. Currently we're seeing S&P futures trade higher by 11 points, NASDAQ futures are up 29 points and Dow futures are up 93 points. Fair value for the S&P 500 today is $4.00. HL Camp & Company has their computers set for program buying at $5.37 and set for program selling at $2.43. Fair value for the NASDAQ-100 today is $9.18.
A bear's worst nightmare may be coming true this morning. The past couple of sessions have had some scratching their heads as stocks showed strength, yet we had not really seen selling in bonds. This morning, bonds are getting a good dose of selling and bond YIELDS unwind to the upside. I just got an upside alert on the 5-year YIELD ($FVX.X) at 4.631% and I'll be watching this bond YIELD closely today. Should we see enough selling to get this bond back near the 4.706%, today's rally in stocks could be quite impressive. Right now, stocks look to have about a two day head start on things, but a trader should be able to find some stocks that are still in some bases where a breakout of that base should provide a nice move higher.
Initial jobless claims unexpectedly fell 23,000 to 346,000, and have fallen 103,000 in the past three weeks. Jobless claims now sit at the lowest level in 5 1/2 months. While a portion of the decline may reflect autoworkers being called back to work after temporary shutdown, the number does suggest that the labor market is starting to stabilize. This temporarily quells economists fears that a deteriorating job market will start to cut into consumer spending.
Key stock in Semiconductors
Shares of Intel (NASDAQ:INTC) are big higher this morning to $31.55 and this open would have the stock right on bearish resistance of its point and figure chart. In last nights market wrap for premierinvestor.net I felt this stock's technicals would give important insight into a continuing semiconductor sector rally. A trade at $32 would have the stock giving a buy signal above resistance. I feel this stock looks just as Cisco Systems (NASDAQ:CSCO) did a few days ago. Traders and investors should at least be monitoring these stocks from time to time to get a feel for big technology strength. Institutions will clamor to shares of INTC this morning as their is good liquidity in the stock and it gives them easy exposure to technology. If institutions are looking to increase their exposure, then this stock should do well.