THURSDAY 4/24/14; CAT; GM; UPS; Durable Goods; AMZN; MSFT; SBUX

Asia markets are surprisingly negative in light of the FB and AAPL euphoria last evening. Dollar/yen is steady at 102.41. NIKK drops -1% and the SSEC loses -0.5%. The only two major markets higher are the SPASX200 (Australia) and Hang Seng each gaining +0.2%. Japan’s Abe says that a trade deal with US is still not reached. The trade deal is snagging on agricultural and automobile trade issues. President Obama is in Japan and reaffirms the US alliance with Japan including the disputed Diaoyu Islands (also known as Senkaku Islands). The New Zealand Dollar (kiwi) is the best performing currency of the year as the RBNZ started raising rates.

European markets are +0.5% to +1% higher. Alstom pops +13% on the GE takeover talk. Bouygues jumps +4.8%. Truck-maker Scania jumps +10% reaching an agreement with VW over share ownership. American Movil bids for Telekom Austria that pops +7%. German business confidence is better than expected showing that Ukraine turmoil is not effecting Germany as much as thought. The euro remains buoyant at 1.3835.

Draghi says the ECB is committed to using unconventional approaches to monetary policy. He says broad based deflation risks are not seen. Draghi continues to play down deflation but it is easy to see that this is his major concern. Draghi says an LTRO, asset purchases and other stimulus plans are on the table and provides lip service trying to talk down the climbing euro without actually performing any firm action. Traders are not biting with the euro remaining steady at 1.3822. The lip service routine with Draghi is getting old. The ECB will have to provide firm stimulus action to send the euro lower and help support the European manufacturing and export industries and jump start the economy.

European indexes remain elevated. US futures are strongly higher at 5:30 AM EST remaining excited about the FB and AAPL results last evening. S&P futures are +7 setting up a 7 to 10-handle pop in the SPX at the opening bell. Dow +35. Nasdaq +43. The 10-year yield is 2.70%, however, showing that many investors want to stay in the perceived safety of Treasuries. US traders wonder if the tech bullishness will carry the markets forward towards new all-time highs or if an initial market bounce will fade as the day moves along.

[Text is Redacted: Purchase April 2014-04 to Read the Complete Chronology]

Ukraine troops kill five pro-Russian troops in East Ukraine. Russia’s oil and gas conglomerate Gazprom continues to demand payment from Ukraine. Putin says the Internet is a “CIA product.” Secretary Kerry says the “window is closing” for Russia and they may make a “tragic mistake.” Global markets are becoming concerned over the growing geopolitical tensions.