Well today was quite the eratic session. Finally some good earnings reports; JNJ and INTC, disapointing to find that those stocks didn't do very much despite the good numbers. It appears traders are very uneasy about inflation. Crude oil prices rose to $114 a barrel and the Producer Price Index registered a much higher than anticipated 1.1% rise for March. There has been way too much talk about the airlines merger. In my opinion the airlines will never make any money anyway with crude above $110 until they are able to pass these prices on to their customers, right now I don't think that is possible. The good news is that the financials are starting to stabilize as they have been backing and filling. The worst is probably not over for the financials, but we are getting there. They have been cheap for quite some time and someone is bound to step up to the plate sooner than later and buy these things. Could be a good opportunity to buy some calls here. Here is a look at the economic reports tommorow:
7:00 MBA Mortgage Applications: 5.4% prior.
8:30 Consumer Price Index (m/m): 0.3% cons.
8:30 Core CPI (m/m): 4.0% cons. 8:30 CPI (y/y): 4.0% cons.
8:30 Core CPI (y/y): 2.4% cons.
8:30 Housing Starts: 1020 k cons. 8:30 Building Permits: 970 k cons.
9:15 Industrial Production: -0.1% cons.
9:15 Capacity Utilization: 80.3% cons.
2:00 Fed’s Beige Book
As for the earnings front:
Before the bell notables: ABT, AMR, ASML, BMI, KO, ITW, JCI, JPM, MTG, PJC, STJ, WFC, WWW
After the bell notables: ALRT, ATR, CNW, CCK, EBAY,GILD, IBM, KMP, LEG, SOV, RMBS, TER, UFPI
Buyers really need to step up to the plate here. I have drawn the important resistance levels for both the Q's and SPY.
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