The economic data in the US was weaker across the board with retail sales, PPI, and industrial production/capacity utilization all coming in weaker than expected in December. That has yields moving sharply to the downside with the two-year down -10.5 basis points and the 10 year yield down -14 basis points. European yields are also moving to the downside.
The US stock market is taking the weaker data as a sign of a softer fed than what they portray. The NASDAQ is leading the way and is looking to extend its seven-day when streak. The Dow is lagging.
A snapshot of the market at the open is showing:
- Dow Industrial Average up 65 points or 0.19% at 33976.37
- S&P index of 14.41 points or 0.36% of 4005.39
- NASDAQ index up 81.26 points or 0.73% 11176.37
- Russell 2000 up 8.73 points or 0.46% at 1893.02
For the S&P index, it remains above its 200 day moving average (green line in the chart below) for what would be the third day in a row. At 200 day moving average comes in at 3975.53. Stay above is more bullish.
For the NASDAQ index, it is above its 100 day moving average at 11032.28. The 30.2% retracement of the move down from the August high is the next key target at 11270.07. The 200 day moving average is still a ways away at 11602.03 (around 3.7%).
