Stocks On Track To Extend Win Streak; Is Cisco For Real?

Whilst the market is showing signs of carving out a bottom and the volatility index (VIX) or fear gauge, has dropped back below 20, after peaking at over 50 just last week, it is unlikely that this is the last we have seen of the volatility as markets claw back these recent losses. In the 12 months through January, the core CPI increased 1.8 per cent.

Meanwhile, Apple's relative strength line, which tracks a stock's performance vs. the S&P 500 index, has been on the rise since Feb. 2.

Wall Street should have done a triple somersault dive especially given that this result was worse than the top-end of market expectations of between 0.3% and 0.4% (enough to force it into a correction earlier this month).

Benchmark U.S. 10-year Treasury yields dipped to 2.842 percent, shy of a four-year peak of 2.9020 percent hit on Monday.

If CPI runs hotter than projection, it may fuel concerns that the Fed may raise interest rates even faster. Late Wednesday, the chip equipment giant reported strong earnings and guidance, doubled its dividend and announced a new $6 billion buyback.

On the economic front, the Empire State Manufacturing Survey for February will be issued at 8.30 am ET.

Asian shares closed in the positive territory, while European shares are trading higher.

Chipotle Mexican Grill surged 15.4 per cent after tapping Brian Niccol as chief executive.

Advancing issues outnumbered declining ones on the NYSE by a 1.31-to-1 ratio; on Nasdaq, a 1.48-to-1 ratio favored advancers. In past recoveries, it has sometimes taken months or more for momentum to fully turn around.

After years of declines, watchmaker Fossil soared $7.93, or 87.7 percent, to $16.97 after it did far better than Wall Street expected in the fourth quarter.

Shares of cannabis companies also came under pressure the day after Canadian government officials said the planned July start date for legalized recreational marijuana was set to be delayed further.

Taking out one-time items, the company earned US$415mln or US$1.12 a share, against the US$334mln recorded a year ago, and beating market expectations for US$1.01 a share.

Gold rose $10.70 to $1,326.40 an ounce.

What's more, they argued that a big chunk of the selling was of a so-called "technical nature", or forced selling by investors.

Oil prices rose slightly, as the rebound in the global equities market and the dollar's recent weakness supported their recovery from last week's slide.

2 reasons to buy calls on this commodities stock.

Canopy Growth Corp. declined 4.3 per cent to $26.80, while Aphria Inc declined 5.7 per cent to $14.04.

The major European markets also moved to the upside on the day. Natural gas lost 1 cent to $2.59 per 1,000 cubic feet.

Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.

On the earnings front, retail giants Wal-Mart (WMT) and Home Depot (HD) are among the companies due to release their quarterly results next week.

  • Zachary Reyes