The Asian markets were up, HK +2.06%, Shanghai +0.80% and Japan +0.69%. BABA reported less bad sales than expected and encouraged the large cap Tech group.
European markets were up modestly, Euro STOXX +0.59% and DAX +0.55%. The BOE raised the rate 0.50% and said more is ahead, inflation double digits. It also predicted a 5 quarter recession coming!!!!
In the U S, the final June Trade Deficit improved more, -79.6 billion from -84.9 billion.
The Initials Claims were 260,000 from 254,000. It has been in this area for a month.
S&P 500 -3,23, -0.08% to 4,151.94
The market went to 4,160 early. It took a quick dive to 4,130. The rest of the day it fell and went back to even three times. It ended with a dip.
It was a churning day with growth the more positive area. The 10 yr T Bond rate edged back down. The BOE recession forecast in the UK was in the background.
Earnings remain mixed, with less bad than expected. The low expectations has created a lot of rallies off of earnings. This is indicative of too many shorts and buyers wanting in.
Mester, a voting Fed dove, said she expected the rates to go above 4% and stay there until inflation is at 2% !!!
The DJIA -0.25%. The NASDAQ rose 0.41% and the QQQ 0.44%. The IWM slipped 0.13%.
WTI fell 2.5% to $88.50. It broke below a key level, $90, which brought in more selling
The XOP dropped 4.7% and the XLE 3.7%.
The 10 yr T bond rate recouped some of yesterday's sharp increase, -6 bps to 2.69%.
The KBWB fell 0.9%. The XLU added 0.2%.
The VIX fell further, 2.3% to 21.44. This brings in some algo fund buying. The declines led 1.1 to 1 on the NYSE. The advances led on the NASDAQ 1,4 to 1.NYSE volume was average, while the NSDAQ was well above average.
Goldman came out with new strategy report today. It warned that the bottom is not in yet. It has been less negative.
There is still momentum from a variety of buyers including more from the public in individual stocks.
Tomorrow is the Employment Report. The consensus is for 250,000 from 370,000 last time.
This seems reasonable. A very negative surprise would make analysis complicated. The only hint would be due to a string of Household Survey negative readings for the last three months??
Jerry