The Standard & Poor’s 500 Index (CME:SPM14) climbed a third day today.
- Yahoo rallied 5.3 percent after sales surged.
- Google Inc. and International Business Machines Corp. report earnings today.
- A Commerce Department report showed the pace of U.S. home construction rebounded less than forecast in March.
- The central bank releases its Beige Book economic survey at 2 p.m.
Equities: The E-mini S&P 500 (CME:ESM14) is up almost 10 points to 1848.75, after almost breaking below 1800 just days ago. 1850 looks like a key resistance level, however it looks like Citi and Yahoo earnings, as well as a nice retail sales number. Overall, if the economic data continues to surprise to the upside, it might excite the bulls to come back on the scene and try to drive the market to 1900, even with the tapering. It looks like it is tough for the market to sustain a downmove in the face of strong economic data.
Bonds: The 30-year bonds are down 7 ticks to 134’20. 135 could be a key barrier for the bond market, however we believe this market is susceptible to further upside in light of the Ukraine situation.
Currencies: The U.S. Dollar (NYBOT:DXH14) is down 3 ticks to 79.85. The Euro (CME:GEM14) is up 17 ticks to 138.25. Janet Yellen spoke today and was somewhat “dovish” which could portend further losses for the USD. The Yen is down 44 ticks to 97.80, after failing at a key level of 98.80. We believe the Yen could still be preparing for a move back up to 100.
Commodities: Coffee (NYBOT:KCK14) is down 5 cents to $1.8985. We believe coffee will have trouble sustaining a move above the recent highs of around $2.10. Gold (COMEX:GCK14) is back up slightly today to $1,303. We believe gold could find some buying down at these levels, and could very well approach $1325. Soybeans have been extremely strong recently, and are up another $.13 to $15.14. WTI (NYMEX:CLK14) is down $0.25 to $103.51. We believe WTI is susceptible to more losses, potentially approaching $101 soon.