After the open… On Wednesday afternoon, we officially entered the post-stimulus era, and stocks have been responding positively, for the most part. The US economy also appears to have grown at 3.5% in Q3 – which is quite a bit better than most economists were expecting. Third quarter earnings are still mostly strong, the dollar is predictably strong, energy is cheap, and the S&P 500 is down 0.2% at 1,978. So the bull charges on – but there are problems: much of the world beyond US borders is in terrible shape, US wages are still stagnant, and deepening political paralysis could easily result in the return of debt-brinksmanship next year.
Here are your Thursday morning market metrics. Industries doing well today Real Estate Management, IT Services and Building Products. Industries showing weakness include Personal Products, Semiconductors and Energy Equipment.
The VIX is down 1.6% to 14.91 after closing on Friday at 15.15. The most active option strike this morning is Cisco (CSCO), with 9,462 January 26 calls changing hands – clearly initiated as buys. The put-call volume ratio is 1.06, (240,802/254,491). NYSE Adv/Dec 1,143/1,625. Nasdaq Adv/Dec 937/1,200.
Julian Close has been a business writer since the first day of the twenty-first century, having written for PRA International and the United Nations Department of Peacekeeping. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. He became a stockbroker in 1993, but now works for Fresh Brewed Media and uses his powers only for good. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.