Stocks are drifting meekly on Thursday after Wednesday's push to all-time highs and strong economic data.
Source: Dawn Via Flickr
Stocks dropped near the open, and bonds rallied, after CNBC confirmed that the melt up of the past week had been driven largely by sizable short call option covering by the Catalyst Fund after its bet against the Trump rally went sideways.
That also explains the relatively odd surge of volatility in yesterday's session.
News flow is light today, with a focus on renewed chatter of a border adjustment tax and hawkish Federal Reserve speak. Nothing major.
But the action is good enough to push up stocks in lagging areas like utilities, healthcare and consumer staples. Case in point is Johnson & Johnson (NYSE: JNJ ), which is rising up and over its four-month trading range to return to levels not seen since November. This effectively ends a downtrend that's been in place since July.
That's great news for the March $115 JNJ calls recommended to Edge Pro subscribers, as they have zoomed up to a gain of roughly 73% since recommended on Tuesday.
The company will next report results on April 25 before the bell. Analysts are looking for earnings of $1.76 per share on earnings of $17.98 billion.
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