S&P 500 Climbs Back Above 1750

The U.S. markets recovered from yesterday’s losses and closed higher yesterday. The S&P 500 is once again above 1,750 as we got some okay corporate earnings and okay economic data.

We saw weekly jobless claims falling 12,000 to 350,000 (seasonally adjusted). We expected a fall to 340,000. Ongoing computer issues are still distorting California. This problem has been ongoing since September.

We also saw the trade deficit widening by 0.4 percent to $38.9 billion in August. Exports are down in the U.S. We expected a print of $39.5 billion.

STOCKS
The DJIA rose 95.88 points and closed at 15,509.21. While above 15,500 we can target 15,800. The Dow Jones is within 1.5 percent of its all-time high. We should note here, that the index has been erratic. One say gains and one day losses.

The S&P 500 rose 5.69 points and is back above 1,750 once again. On a yearly basis the index is up 20 percent. The Nasdaq Composite was up almost 22 points to close at 3,928.96.

The Nikkei is down over 1.7 percent as the index is being hit by a stronger yen and investors are receiving corporate earnings and poor economic data. The CPI climbed 0.7 percent last month from the year earlier. The Nikkei is now at a two week low.

The Shanghai is also lower and has hit a seven week low. The Kospi is down and at a ten day low. The Australian S&P/ASX is up by 0.3 percent as it continues to buck this bear trend. In India, the Nifty 50 lost 0.1 percent yesterday.

CURRENCIES
The USD/JPY (97.093) has fallen even further today and is now testing 97.00. We need that to hold and if it does we will bounce to 99.00. In the medium to long term we appear to be consolidating from 96.99 to 100.

The GBP/USD (1.6237) is trading from 1.6250 and 1.5100. If we break above the resistance we are testing now then we aim for 1.6350 and then 1.6400. The AUD/USD (0.9613) moved sharply lower as the 20 moving average held. We are testing support at 0.9600. If it breaks we aim for 0.9500.

COMMODITIES
Gold (1344.60) is still looking bullish to aim for 1400 on a break above 1350. Silver (22.69) also looks strong and could break above 22.75 to target 24.00. Copper (3.268) is getting support at 3.25 and could retest 3.330.

TODAY’S OUTLOOK
Markets are trading on economic data that is not great but just okay. Investors are looking for some progress at this time.

The U.S. is releasing the durable goods orders, which has been delayed by the government shutdown. There is a small chance it could be delayed again today. We also get consumer sentiment.