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S&P 500 (SPY) futures +0.4%, Nasdaq 100 (QQQ) +0.5%, and DJIA (DIA) +0.3%. Any excuse for gains works during a tough market and better-than-expected economic data in the Eurozone and China is the tonic this morning.
The 10-year Treasury yield, however, continues its march to 3%, up 4 basis points to 2.93% - a new high for this bear move. The 30-year bond wants 4% - it's climbed to 3.93%.
Following a knee-jerk reaction sharply lower, stocks turn green after taking a few minutes to digest the FOMC minutes, and maybe figuring the initiation of the taper is old news at this point. The FOMC also seemed to go out of its way to reassure markets it won't try and get ahead of the economic data (though an older breed of bond buyer would find that very much not assuring).
Yesterday was the first session in more than three years which saw the Dow (DIA) decline while the Russell 2000 (IWM) rose more than 1.5%, according to Bespoke.
Bullish or bearish? Small cap outperformance is commonly thought to signal the sort risk-appetite necessary for a bull market. The Russell 2000 has outperformed the Dow by nearly 1000 basis points over the last year with all of the gain coming since the bull move took off in mid-November.
Small caps really started to widen their lead from late June - perhaps signaling the sort of over-exuberance necessary to set at least a temporary market top.
S&P 500 (SPY) and Nasdaq 100 (QQQ) futures -0.4% and DJIA (DIA) futures -0.3% as earnings roll in from a number of major retailers and Dow component H-P reports after the bell. Also on tap is the release of the FOMC minutes from July's meeting - it may or may not provide further confirmation of the rumored September QE taper.
All is calm on the rate front, with the 10-year Treasury flat and yielding 2.83%.
Europe's marginally lower and Asia was mostly lower overnight.
What selloff? Global stocks mostly yawn at the big decline in the U.S. yesterday, with Asia just moderately lower and Europe mixed, but the Stoxx 50 pretty much back to it's level from the Wednesday close.
S&P 500 (SPY) and Nasdaq 100 (QQQ) futures +0.3% and DJIA (DIA) futures +0.2%.
Treasury yields start the day headed higher again, the 10-year up 2 bps to 2.77%, and precious metals are little-changed after yesterday's big rally.
S&P 500 (SPY) futures -0.5%, DJIA -0.4%, and Nasdaq 100 (QQQ) -0.65% as Cisco dives following last night's soft guidance and job cut announcements, and ahead of Wal-Mart earnings and a big slate of economic reports and more words from the Fed's Bullard.
Europe's moderately lower and Asia fell overnight.
Treasury yields are on the march higher, the 10-year right around its YTD high at 2.73%.
The St. Louis Fed's Jim Bullard doesn't disappoint, arguing the FOMC needs more data before deciding whether to commence the QE taper.
Unemployment is down and payroll growth is generally strong, but other measures - labor force participation, employment to population, growth in hours worked - remain weak. Should the FOMC focus on NFP and UE or must a wider range of indicators be considered, he asks.
GDP growth has been pretty lame. Yes, the forecasts are optimistic, but Fed forecasts have been optimistic and wrong for years.
Then there's inflation - it remains below the 2% target and shows little sign of heading up to that level.
He suggests the start of the taper centers around the September meeting because a Bernanke press conference will follow, with no other press conference scheduled until December. By picking only certain FOMC meeting to follow up with a presser, the Fed has allowed to rise the perception that some meetings are more important than others and major policy decisions will only occur at certain meetings. All FOMC meetings should be ex ante identical, he argues (a press conference for each one - say it ain't so!).
S&P 500 (SPY) and Nasdaq 100 (QQQ) futures -0.5% with DJIA futures -0.4% as equity markets look to continue - at least at today's open - their thus-far tiny August funk.
China and Hong Kong each roared higher by more than 2% overnight and Japan slipped a little with weakish Q2 GDP data the apparent excuse for selling, even though it's nearly 3-month old information. Europe is off moderately.
Treasury prices are off a hair with the 10-year yield up 1 basis point to 2.59%.