Friday's Musing 4/26/2013

Friday's VUE 4/25/2013

Good Morning All, 

The markets were choppy yesterday, but with fairlywide swings. The US stock went straight up from the closing for well over 1 hour. Then it hesitated, and the ups and downs were small.  Then the market hit a liquidation, and contrary to what you saw in the WSJ this morning, the market's movement was in overnight trading and the 1st few minutes of trading.  

Opening VUE

1. S&P 500 is trading lower overnight. Not much mind you.  This follows along with the Euro Stoxx 50 index which lost almost 1%.  
2. Today the GDP for the US was released. The numbers missed expectations.  The report prints a 2.5% growth rate. The bright spot was consumer spending. The net export gap worsened to $480 billion from $387 billion last reported.  
3. June 10 year notes (You can view TLT on stockcharts.com) are up this morning.  
4. The dollar index is slightly lower this morning. 
5. The Japanese Yen is trading higher as the BOJ left rates unchanged after their meetings yesterday.  
6. June crude oil is down this morning.
7. Most of the companies reporting earnings yesterday beat expectations.  Weyerhaeuser was particularly good.

What will happen today?  The bias leans toward the long side with the GDP report and the good earnings reports  Look for the first hour to establish the market's direction for the rest of the day.  

The opening in NY looks like this could be another choppy day.  Consumer sentiment economic report comes out at 9:55 PDT.  Sometimes this report will move the market.