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Microsoft and Intel dominate pre-market

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Better than expected bottom line results from technology bellwethers Microsoft (NASDAQ:MSFT) $24.61 and Intel (NASDAQ:INTC) $17.13, which had both companies reporting earning's that were above analysts expectations has given a lift to stock futures and broader technology in this morning's pre- market trade. Both stocks see higher price action from yesterday's close, but are off their overnight session highs with Microsoft (MSFT) this morning's most actively traded stock at $25.63, and Intel (INTC) the second most actively traded stock at $17.90.

J.P. Morgan shares rose 3.3% to $27.75. The Dow component reported first-quarter net income of $1.4 billion, or 69 cents a share, up from 48 cents a share in the year-earlier period, and above the average analyst estimate of $0.51.

Economic data released this morning had housing starts for March rising to a better than expected 1.78 million annual rate, which was stronger than the 1.70 million rate forecasted by economists. The more forward looking March building permits wasn't as positive as building permits fell to a 1.685 million annual rate, which was below economists forecast of 1.75 million.

The building permits number looks to have received a somewhat negative response from the market in this morning's pre-market trade as S&P futures (sp03m), which were trading around 898 have given back about 3-points to 895.70, but still hold a 2 point gain. NASDAQ futures (nd03m) are currently showing a 15 points gain at 1,074.50, while Dow futures (dj03m) are higher by 25 points at 8,425.

Fair value for the NASDAQ-100 today is $-0.71. That price will not change during the session. HL Camp & Company has their computers set for program buying at $0.35 and set for program selling at $-1.96.

While stock futures did pull back after the release of the forward looking building permits, early selling in Treasuries at their open now sees mixed results with the longer-dated 30-year Treasury futures (us03m) gaining 6/32 at $112'00, the 10-year futures contract (ty03m) $114'025 is now lower by just 1/32 at $114'025 with the benchmark bond's YIELD ($TNX.X) edging up just fractionally at 3.973%, while the shorter-dated 5-year futures contract (fv03m) is lower by 2/32 at $112'260 with its YIELD ($FVX.X) rising to 2.931%.

NASDAQ-100 Index Chart - Daily Intervals

The NASDAQ-100 Index looks to open right near our WEEKLY R1 level of resistance and into a "zone of resistance" from our MONTHLY (red) and WEEKLY (blue) pivot analysis retracement. I'd be "careful" with bullish gains this morning after yesterday's buying in Treasuries and this morning's building permits data, which looks to have gotten a somewhat cautionary response from the bond market in its early trade.

Jeff Bailey

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