More Strong Bank Earnings Boost Market

The market got another boost from a large financial firm, this time JP Morgan (JPM). The company reported better-than-expected earnings, and it stock gapped +10% higher. This helped boost the financials and the broader market as well. Fannie and Freddie are also higher, on a confirmed credit rating.

There were other solid earnings reports from Nokia (NOK), Yum Brands (YUM), and Nucor (NUE). While the overall market was higher in early trading, it is fading as of this post. Given how every big rally seems to be completely reversed the next day, I think bulls will be happy if we can finish anywhere near flat today.

In economic news, housing starts for June were better than expected, and weekly jobless claims were below consensus estimates. Those two positive datapoints were offset a little by a weaker than expected Philly Fed report, but this index has been weak for a while.

Asian markets were higher overnight, and the dollar is mixed today. Oil and gold are both higher, with the former moving back above $136 after a sharp 2-day drop. The 10-year yield is higher at 3.96%.

The bull/bear spread in today's AAII survey was -33%, the 6th consecutive week that bears have outnumber bulls. Additionally, in yesterday's Investor's Intelligence report, bears came in at 49%, their highest showing since January 1995. The negativity bubble is alive and well.