The Asian markets were mixed, HK +0.40%, Shanghai -0.71% and Japan +0.53%. China's Service PMI was 55.5 from 54.5, but the Composite was 54.0 from 55.3. The HK PMI was 52.3 from 52.4 . Japan's Composite PMI was 50.2 from 53.0. Services was 50.3 from 54.0. Japan is having the Virus coming back.
European markets were up, Euro STOXX +1.30% and DAX +1.03%. The EU Services PMI was 51.2, a touch above expectations. The EU PP! was +1.1% m/m and 35.8 y/y.
In the U S, the July Auto Sales rose to a 13,3 million SAAR from 13.0 million in June.
The S&P Services PMI was 47.3 from 47.6.
The ISM Services was 56.7 from 55.3. This Survey is heavily weighted towards large companies. It is quite a difference from the smaller size company PMI.
June Factory Orders increased 2.0% from 1.8%, above forecasts.
S&P 500 +63.98, +1.56% to 4,155.17.
The market climbed to 4,130 in the first hour. After a small pullback, it reversed and climbed all day until a late dip.
Momentum is the key force now. I have written about the large pockets of negative positioning. A new factor is public buying as investors gain confidence as the market rallies. TSLA is up 16 days in a row. The Taiwan worry had ended as far as the markets were concerned.
Oil is becoming a significant catalyst as the price erodes. Today WTI declined 3.9% to $90.55. Oil is the most visible form of inflation, when you fill your tank. It makes forecasts of declining inflation more believable.
The DJIA was up 1.29%. The NASDAQ rose 2.59% and the QQQ 2.72%. The IWM added 1.41%.
WTI was hit by a large inventory addition when oil is vulnerable Technically. OPEC had a minor increase in production quotas. At $90.55, the XOP dropped 2.5% and the XLE 2.9%.
The 10 yr T Bond rate slipped back 3.8 bps to 2.745%. The drop in oil probably helped.
The KBWB gained 1.5%. The XLU was +0.6%.
The VIX plopped 8.7% to 21.95. The advances led, the NYSE 2.3 to 1 and the NASDAQ 2.5 to 1. The NYSE volume was average. The NASDAQ volume was very heavy as some major growth stocks surged today.
The Bulls improved to 41.1 from 38.9. The Bears fell to 30.1 from 33.3. This is bullish as more investors are getting advice to buy. This helps bring in the public.
Jerry