There hasn’t been a lot of buying conviction in the equity futures trade this morning, yet the larger point we suppose is that there hasn’t been any real selling interest either.<\/p>\n\n\n\n
Our assumption is that traders were enthused by how the stock market closed yesterday (on an upswing) more so than they were put off by how it opened (on a downswing). The inference is that it was clear to see in yesterday’s trade that the buy-the-dip inclination is still alive and well.<\/p>\n\n\n\n
That view has carried over, albeit to a modest degree, this morning.<\/p>\n\n\n\n
Currently, the S&P 500 futures are up five points and are trading 0.1% above fair value, the Nasdaq 100 futures are up 14 points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are up 12 points and are trading fractionally above fair value.<\/p>\n\n\n\n
Apple (AAPL)<\/strong> has been a bit of a beacon for the buy-the-dip trade. Entering yesterday’s trade, it had fallen in five consecutive sessions. It traded lower off yesterday’s open (along with most stocks) but then rebounded (along with most stocks) and ended the day higher. It is currently up 0.5% in pre-market trading.<\/p>\n\n\n\n Other mega-cap stocks are sporting modest gains, which is obviously a helpful factor for the broader market on a day that is lacking corporate news with market-moving cachet.<\/p>\n\n\n\n Granted there has been a lot of corporate news since yesterday’s close, most of which is earnings related, yet none of it has a macro pull to it. Instead, it is predominately micro, which is to say it has triggered more company-specific\/industry-specific trading responses.<\/p>\n\n\n\n