A weakier than expected ADP report pushed futures higher prior to the open. Weak data is perceived as a positive as the Federal Reserve is data dependent. Any possibility the Fed pushes out hiking rates will be seen as a positive. DIS shares were lower as the company earnings disappointed the street. AAPL was able to turn early morning losses into gains. Crude oil pushed lower. Last but not least, the VIX set a new 52 week low today. The blemish on the session was the afternoon selling push stocks well off their highs. Not typically the strength you want to see from the market. Luckily for the NASDAQ it was able to close above its opening price and close green on the day. This market continues to tread water and we continue to wait to see if the broader market will push higher.
We have a fifth member to our “horsemen” today. PCLN was able to break into new all-time high as investors cheered the stocks earnings report. It now joins FB, AMZN, NFLX, and SBUX. FB had a stellar day up some 2% on the session and looking to break free from this short consolidation pattern. These stocks are a decent barometer for this market. Keep an eye on them as we progress this month.
One thing to continue to keep an eye is certainly the US Dollar. It remains in a bullish pattern ready to break out at any moment. It is quite clear a rising dollar impacts multinational companies. While it does help the US Consumer it does a number on revenues and profits.
In after-hours trading a recent IPO with FIT was crushed after repoting earnings. The stock closed down 13% at the close of the after-hours session. It would have been a positive for this market to see a recent IPO run. Another disappointing earnings report came from TSLA as the street knocked the stock down nearly 6% in after-hours trading. Not the type of action you want to see out of stocks in the leadership categories.
This market can tread water longer than most can stay solvent. We have a mixed market with the NASDAQ being the clear winner in this race. Stick with winners and shed your losers
