The market sold off slightly yesterday, ending a four-day streak of higher closes on concerns about the internal vote overnight from Greece. But a successful vote clearing the way for a bailout package buoyed worldwide markets this morning, and in premarket, the S&P 500 futures were higher as well.
In all the excitement, one snippet may have been overlooked: a positive report coming out of the Federal Reserve’s “Beige Book” showing growth in the economy nationwide.
Meanwhile, in her attention-grabbing testimony and Q&A on Capitol Hill, Federal Reserve Chair Janet Yellen confirmed that the Fed still expects to raise interest rates in 2015, saying that “economic conditions likely would make it appropriate.” Her address to Congress continues today. According to IG market analysts, her comments didn’t necessarily bring any surprises—but a clarion wakeup call that the global markets may have been watching the wrong events.
Watching NFLX. After the close, investors were treated to a very nice earnings report from Netflix (NFLX), which moved its share price 11% after earnings—greater than the 8% expectation that was built into option pricing.
Revenue Relief. Positive reports also came in from Intel (INTC) and Citigroup (C) as they beat on both earnings and revenue—the latter an essential metric that has been a challenge for the financials.
What’s Next? Today the technical-minded will be watching the 2120 level in the S&P 500 (SPX), which may act as resistance. As for the CBOE Volatility Index (VIX), the market’s so-called “fear gauge,” it’s worth keeping an eye on the 12 level, an area that has created bounces in the past.
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