Intraday Market Update
After hitting an overnight low of 1,141 (-10 points off of Tuesday's close) the S&P 500 futures rebounded +17 points and gapped open higher this morning at 1,158 (+7 points higher than Tuesday's close). All of the major indices continued surging higher and are now near the highs of the day. The Russell 2000 is leading the way with +2% gains followed by the NASDAQ with a +1.65% gain. The DJIA and S&P 500 are both up greater than +1%. All of the indices have now retraced 100% of the incredible plunge from last Thursday.
A lack of news is bringing investor's risk appetite back to the table. The focus is finally off of the European debt crises as traders turn their attention to domestic economic data. The March International Trade deficit in the US widened +2.5% to $40.4, which is the highest level in more than a year as imports climbed faster exports. Imports and exports jumped +3.1% and +3.2% respectively. The trade gap was led by a surge in oil demand. Trade deficits with most major trading partners widened including those with China, Japan and the European Union. The MBA Purchase Applications Index fell -9.5% signaling the end of the second round housing stimulus. In late April applications surged as buyers rushed to get contracts in place prior to April 30 deadline.
Morgan Stanley is under pressure after the Wall Street Journal reported that Federal investigators are probing the firm over mortgage-derivatives transactions. According to the article federal prosecutors are probing whether Morgan Stanley misled investors about CDO deals and whether the firm disclosed its dual roles. Morgan Stanley denied the report. MS is down -2.50%.
In earnings news, Disney exceeded expectations while Macy's was in line. Shares of DIS are about breakeven and shares of M are up about +2.50%.
Commodities are mixed again with Gold and Silver tacking on additional gains. Gold has gained another +2.15% to 1,246 an ounce and made new all time highs. Silver is higher by +1.82%.
Front month crude is off another -$1.00 (-1.28%) to about $75.00 per barrel after a larger than expected build in inventories. Natural Gas is catching a bid and is +3.40% higher. Copper is lower by about -1%.
Global markets were mixed on Tuesday. Markets in the Asia-Pacific region advancing included Australia (+0.5%), China (+0.31%), and Hong Kong (+0.33%). Decliners included Japan (-0.16%) and Korea (-0.43%).
All major European markets were higher led by Germany (+2.41%), France (+1.10%), and Sweden (+1.73%). Shares in London were higher by +0.92%.
Core Sector List:
Overall reading: 16 sectors advancing, 0 sectors declining.
Strongest Sectors: Semiconductors, Transportation, Gold Miners
S&P 500 - Daily and 30-minute Intraday Charts:
Dow Jones - Daily and 30-minute Intraday Charts:
NASDAQ - Daily and 30-minute Intraday Charts:
Russell 2000 - Daily and 30-minute Intraday Charts: