Note: Mark Vickery will be taking care of the Ahead of Wall
Street morning write-up during my absence the next few days
Pre-open sentiment indicates that stocks will start today's
session on a favorable note and continue to build on the positive
momentum following the Fed's Taper announcement. This morning's
positive Jobless Claims reading should help sentiment as well.
Economic data has certainly been surprising to the upside lately.
Housing continues to improve as Tuesday's new home sales numbers
for November showed. The last two months of new home sales data
is the highest level since the middle of 2008. The Durable Goods
data from Monday and earlier Retail Sales numbers showed similar
momentum, confirming the favorable momentum from both the
household and corporate sectors.
This morning's big Jobless Claims drop reverses some of the
seasonality distortions in this key labor market metric, keeping
hopes alive of a strong showing from the next government jobs
report. This recent run of strong economic data is prompting
positive revisions to Q4 GDP estimates, which have been moving up
above the +2% level lately. Is it any surprise then the 10-year
Treasury bond yield is steadily moving up towards the 3% level.
It will be interesting to see how the stock market will react
once benchmark yields are firmly above that key level and still
To read this article on Zacks.com click here.
In corporate news, Japan's Softbank is reportedly in discussions
with banks to round up funding for making the long-rumored bid
). Softbank is believed to be considering combining its existing
) holding with T-Mobile USA to create a viable competitor for
). T-Mobile is no stranger to such tie-up proposals, as the 2011
bid from AT&T shows. The AT&T bid was disallowed by
regulators and it's unclear whether regulators will respond
differently to a Sprint.