Wall Street struggles for direction

A modest recovery in sentiment on Wall Street yesterday saw bond yields move higher too, pushing back the need for the Federal Reserve to rush into any technical adjustments of interest rates and in turn limiting further upside for stocks. Fresh losses for Boeing are contributing to the Dow’s underperformance when compared to the S&P and after a mixed session in Asia, there really is a dearth of fresh direction out in the market right now.

The economic calendar for the day ahead looks rather muted, too, with limited high profile economic data scheduled for publication, again making direction difficult to call in the near term. Looking slightly further ahead, tomorrow’s revision to Q4 US GDP data may reignite discussion over the need for a rate hike with a downward amendment being forecast here. That spread between the two year and five year treasury notes will remain worth watching as further growth of the inversion could again convince markets that the time for Fed intervention is nearing.

Ahead of the open we’re calling the DOW up 14 at 25672 and the S&P up 4 at 2822.