Comments Wednesday by President Barack Obama and Speaker of the House John Boehner that a deal to avoid a budget crisis could be reached before the year-end helped U.S. markets turn around and are looking up today too.
The government said U.S. gross domestic product grew at a 2.7% annual rate in the third quarter.
Weekly claims for unemployment benefits fell 23,000 to 393,000.
European stocks are up and Asian markets mostly closed higher.
The national average price of gasoline is down six-tenths of a cent to $3.409 per gallon.
Personally, I’m going to trust that the fiscal cliff will be dealt with this year and will move back to 100% long. I know it’s a big risk, trusting our government.
Earnings reports (estimates): KR-Kroger ($0.42), ABGO-Avago Tech (0.73), TIF-Tiffany (0.63), ULTA-Ulta Salon Cosmestics (0.56), SPLK-Splunk (-0.02), NJR-New Jersey Res (-0.26), MENT-Mentor Graphics (0.28).
0600 ET Dallas Fed President Fisher speaks in Berlin at conference “Monetary and Fiscal Challenges in the United States and the Euro Area.”
0830 ET Weekly initial unemployment claims expected -20,000 to 390,000, previous -41,000 to 410,000. Weekly continuing claims expected -12,000 to 3.325 mln, previous -30,000 to 3.337 mln.
0830 ET U.S. Q3 real GDP expected revised to +2.8% from last estimate +2.0% q/q annualized. Q3 personal consumption expected revised to +1.9% from +2.0%. Q3 GDP price index expected unrevised at +2.8%. Q3 core PCE expected unrevised at +1.3%.
0830 ET USDA weekly Export Sales.
1000 ET Oct pending home sales expected +1.0% m/m and +8.9% y/y, Sep +0.3% m/m and +8.5% y/y.
1100 ET Nov Kansas City Fed manufacturing index expected -1, Oct -4.
1300 ET Treasury auction of $29 billion in 7-year T-notes.
1630 ET Weekly money supply report and Fed balance sheet.