THURSDAY 8/14/14; Europe GDP's; German 10-Year Yield Drops Under 1%; WMT; KSS; 30-Year Bond Auction; JWN; JCP; AMAT

Japan Machinery are up +8.8% far below the +15.3% forecasts. Semiconductor machinery orders bump higher but this may be short-lived since the several chip companies are reporting weakness. The dollar/yen tags 102.50 so the weaker yen drives the NIKK +0.7% higher. Australia trades +0.6% higher on robust earnings reports. Telco giant Telstra jumps +2% on strong pr



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dent Putin’s words have the greatest affect on global markets so pay attention to what he says and does. The truck convoy from Russia into Ukraine is detouring to cross at pro-Russian separatist check points rather than Ukraine troop check points.

Stocks inch higher all day long from start to finish. Traders are keying off of Putin’s positive remarks since Friday and the conciliatory tone is creating stock market buoyancy. At 1 PM, the 30-Year Bond Auction goes off at 3.224%.

Healthcare provider and pharma supplier PRGO is up +7.3% the top gainer today rising on robust earnings. AMGN jumps +4% as long traders buy any dips in biotech and pharma stocks. PLUG gains +4.4% as traders hype the fuel cell sector. FCEL jumps +7%. AAP gains +7% as folks keep their used cars on the road and require replacement parts. SEAS continues sinking down -5% adding to ongoing losses; the faces are sad rather than happy at SeaWorld.

The session ends with the SPX gaining 8 points, +0.4%, to 1955, settling exactly between the 20-day MA support at 1952.83 and 50-day MA resistance at 1956.77. The Dow is up 62 points, +0.4%, to 16714. The Nasdaq gains 19 points, +0.4%, to 4453. The RUT gains 2 points, +0.1%, to 1143. Small caps underperform despite traders chasing into biotech and pharma speculative stocks. The VIX drops to 12.42 so the low volatility fuels the stock market upside. Utilities are strong with UTIL gaining +0.8% outperforming.

After the closing bell, Monster Beverage explodes higher from an energy boost to earnings and a $2 billion investment by KO. Coke now has a 17% stake in Monster. MNST is up +26% in AH trading and KO gains +1%. JWN trades lower after reporting in line earnings and announcing the acquisition of the personalized men’s clothier Trunk Club for $350 million. JCP bounces +5% after an earnings beat. AMAT is up +2% on strong earnings and chip equipment orders from Samsung and TSM. ADSK gains +5% on an earnings beat. The AH action is generally very positive so this will likely fuel higher US futures overnight.

Protests continue in Ferguson, St Louis, over the shooting of an unarmed black teen. Rioters need little excuse to vent frustration especially as the US social classes continue separating into rich and poor with the middle class disappearing. Despite trying to create calm, the police revert to tear gas and flash bombs to disperse the crowd. The situation is not improving.

The Vatican surprisingly suggests that military action may be required in Iraq to save the Christians, Jews and Yazidi people from genocide.

A 1962 Ferrarri 250 GTO is auctioned off at $38.1 million breaking records. Only 39 were manufactured between 1962 and 1964. The wealthy, made wealthier by the Fed and other central banker easy money policies, continue to buy expensive real estate, art, collectables and vintage cars as the middle class and poor suffer through ongoing structural unemployment.