US equities trade in positive territory, retracing a move lower shortly after the open following lower than expected US New Home Sales for December. Positive sentiment from strong pre-market earnings prevailed and allowed the S&P 500 to continue its recent rally, the strongest for eight years. The S&P 500 is currently trading above the key psychological level of 1500, if it settles in positive today then it marks the eight day in a row and the Dow is on track for its best January since 1994. In terms of stocks, earnings continue to be the driving force behind performance with Netflix the best performing company for the second day in a row up 13.85% after reporting strongly yesterday and KLA-Tencor the second best up 9.31% after reporting today. In terms of sectors Consumer Services is the best performing up 0.81% led by Netflix and Starbucks who also reported an earnings beat. Treasuries have trended lower throughout the session, under pressure following a bigger than expected LTRO payback in Europe, with the downside pressure pushing T-Notes through last weeks low and S2 at 131.22.
WTI and Brent crude futures trade in minor positive territory, rallying in recent trade after finding support at today’s low of USD 95.43. The rally is attributed to optimism regarding the economic outlook with increased risk on appetite in Europe and the US.
EUR/USD trades just off session highs around 1.3456, the R2 level, after seeing a bid tone throughout the session following the aforementioned bigger than expected LTRO repayment and a beat in German IFO data.
Print 18:36, 25 Jan 2013 - Market Analysis - Source: RANsquawk
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: