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Consumer credit soars

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The Fed reported that consumer credit increased by $19.8 billion to $1.65 trillion (up 14.6%) in November, fueled by 0% financing for autos and discounting incentives for other products to lower inventories. November's report marks the largest rise in consumer credit since the data was first tracked in 1943. Economists had expected a much smaller $5.5 billion rise.

The Fed also revised October's overall consumer credit number to $11 billion, which nearly doubled the previous report.

Non-revolving credit, which includes car loans but also borrowing for higher education and other personal loans, expanded by $14.4 billion or over 18%. Revolving credit, namely credit cards, increased more than 9% or by $5.4 billion in November. It was the largest jump in seven months.

The Fed's monthly report does not keep track of mortgage borrowing or home equity loans.

Stock futures in the green

Stock futures are moving higher in pre-market action as S&P futures gain 3 points to 1,166. NASDAQ futures are higher by 20 point at 1,693 and Dow futures are posting gains of 24 points at 10,184.

Fair value for the S&P 500 today is $1.25. HL Camp & Company has their computers set for program buying at $2.51 and set for program selling at $0.19. Fair value for the NASDAQ-100 today is $5.80.

Software stocks bid higher in pre-market

Shares of SAP Aktiengesell (NYSE:SAP) are being bid higher to $36 after finishing yesterday's session at $33.22. The application software maker announced it expects to top revenue forecasts of $891 million for the year on strong fourth quarter sales. Analysts were looking for revenues of some $781 million.

SAP's rival Oracle (NASDAQ:ORCL) is also trading higher in pre- market action after finishing yesterday's session at $15.75. Currently, we're seeing action at the $16.30 level.

Other software stocks like PeopleSoft (NASDAQ:PSFT), Siebel Systems (NASDAQ:SEBL) and Manugistics (NASDAQ:MANU) are also seeing upside action in pre-market trading.

Jeff Bailey
Senior Market Technician
Option Investor

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