Market Update

Stocks Higher, Rebounding From Yesterday’s Sell-Off! U.S. equities are back on a roll and have nearly reclaimed their steep Monday losses led by the NASDAQ comp, which is 1.25% higher with the blue chips about 0.75% firmer. With retail sales was not a complete write-off in ex-auto terms and, along with rising business inventories, has caused Q4 GDP growth forecasts to be raised to 3.6% from 3.3%, which doesn’t hurt either.

Bank earnings, telecoms M&A and tech have been the lead drivers of the rebound. In terms of lead gainers in the Dow, Intel is sharply higher at +3.5%, while Microsoft +1.9% and Travelers +1.4% are also firm. On the downside, Boeing -1.5% and Merck -1.1% have shed the most. The stock rebound is helping to put a floor under Treasury yields for now, in turn propping up the dollar, especially against the yen. Technology is the upside sector leader, last up over 1.5%. Energy is also a big positive, with all sectors in the green at a more moderate pace of gains.

At current S&P 500 price, resistance for the index is next at 1835.46, the 10-day moving average. Support is at 1827.99.