Major indices are in the green this Friday morning despite news that the US Economy grew at a slower than expected 2.6% in the fourth quarter. It may be that the bad economic news has traders buying because they suspect it will cause the new Fed Chair to ease off just a bit with the rate hikes. Such counter-intuitive trading was once common, but it was hard when interest rates were at their lows. With interest rates, rising, traders could well be returning to old ways. Intel (INTC) is up 8.6% this morning after reporting very good fourth quarter results.
Industries doing well today include biotechnology, semiconductors, and household durables. Industries showing weakness include household products, diversified consumer services, and multi-utilities. The VIX is down 2.4% to 11.3 after closing on Thursday at 11.58. The most heavily traded options this morning are for GE (GE), with 9,999 March-16 15 puts on the board. The total put/call ratio as of 10:00 AM was 0.85 (320,802/271,830). The advancers/decliners ratio for NYSE stocks is 1,432/1,404 while the advancers/decliners ratio for NASDAQ stocks is 1,506/1,209.