Turn around Tuesday

John WeyerGeneral Commentary, Stocks

Moving on up

The equities rebounded nicely on Tuesday, getting back Monday’s losses and had the futures finishing the day +.62% . The 131 point gain in Dow futures had the index trading above where the market closed last week. The market appeared to be led by the banking and energy sectors. Dow futures started moving higher right off the open, and continued a staircase climb into the close. The DJIA closed +173 points, ending an eight day losing streak.

It’s in the numbers

Consumer Confidence came in at 125.6 , above the expected 110-118 range.  That’s also higher than the previous 114.8, and the highest level since December of 2000.  This number gave traders the ability to shake off Friday’s health care setback, and buy into a market that is being supported by strong economic data. Comments from Fed governors that two more rate hikes in 2017 “seem appropriate” also helped sustain the move higher.

Cautious Optimist

I think the equities will continue to move higher tomorrow, but I am not looking for a straight run up. We have a few Fed Governors speaking throughout the day, and anything they say could trickle over into the market.  I am looking for the Dow to push above 20,700 again, but any negative vibes could see a push down to 20,500 again.

 

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