Sept 24th 2014 – Stock Rally Halts 3-Day Rout

Market View:

Quite the rebound today after a shaky start.  Seems that housing is not as bad a first feared earlier in the week.  It remains to be seen if this is just a tight trading range which has been typical of September so far or if we are heading for a new all-time high wave up next.  Only time will tell.

Weekly jobless claims and durable goods are the main news of tomorrow morning, but I doubt we will see a big rally tomorrow after today, probably more sideways to slightly positive depending on the data.

Market News:

U.S. stocks rallied on Wednesday, with the S&P 500 and Nasdaq halting a three-day losing run, after an upbeat report on new-home sales and as investors bet on further monetary stimulus from the European Central Bank.

The Commerce Department reported new-home sales rose 18 percent to 504,000 units in August after a 1.9 percent gain in July. Existing-home sales declined in August for the first time in four months.

Ahead of the open, stock futures gained on hopes for more monetary stimulus from the ECB and after a measure of German business sentiment fell for a fifth straight month in September.

Equities furthered their ascent after Chicago Federal Reserve President Charles Evans said the central bank should be “exceptionally patient” in withdrawing stimulus.

Thursday:

8:30 a.m. Weekly jobless claims

8:30 a.m. Durable goods

1:20 p.m. Atlanta Fed President Dennis Lockhart

News Sources:  CNN Money & CNBC