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Durable Goods jump 2.6%

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Stock futures are bid higher this morning after this morning's durable goods orders placed with U.S. manufactures rose 2.6% in January, which was much stronger than the 1.2% rise expected by economists. Orders for big-ticket items excluding the volatile transportation sector, rose 1.3%, which was the fourth monthly rise in a row. Orders that exclude defense rose 2.3%, also a fourth consecutive monthly advance. Aircraft orders jetted higher by 21%. Other areas also showed gains including more demand for semiconductors, computers and other high-tech equipment. A key measure of broader manufacturing health, non- defense capital goods orders, edged up 0.5% after falling in December.

The Commerce Department did say that December's durable goods number was revised lower to show a 0.9% gain from the earlier reported 1.7% rise.

Stock futures were in positive territory prior to this morning durable goods orders and have built on those gains.

S&P futures currently trade higher by 5.4 points at 1,113, NASDAQ futures are up 14.5 points at 1,417 and Dow futures are showing gains of 45 points at 10,145.

Fair value for the S&P 500 today is $0.10. HL Camp & Company has their computers set for program buying at $1.36 and set for program selling at $-1.06. Fair value for the NASDAQ-100 today is $1.90.

New home sales

New home sales were scheduled for release at 08:30 AM EST and economists were expecting a number at 939,000. I have not seen any report on this economic data, but will update later in the day once it has been released.

Biotech stock ImClone halted after surging higher

Shares of recently beleaguered biotech ImClone Systems (NASDAQ:IMCL) $15.52, surged to $22.21 in pre-market action before being halted with news pending. Reuters reported that the FDA would consider reviewing the company's application to market its cancer drug Erbitux if the firm resubmits trial data and supplements it with European trial data. ImClone (IMCL) and its partner Bristol-Myers Squibb (NYSE:BYM) met with the FDA yesterday.

S&P 500 bullish percent back to "bull confirmed."

Yesterday's trading has one of our key broader market indicators in the S&P 500 bullish percent ($BPSPX) from stockcharts.com reversing back into bull confirmed status at 60.40%. This indicates that 60.4% of the 500 stocks that make up the S&P 500 are now showing a supply/demand buy signal on their charts. We would interpret this as a sign that this market's (S&P 500) internals are improving.

Jeff Bailey
Senior Market Technician
Option Investor

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