‘Textbook’ Bounce Doesn’t Stop for Speeches: Taking Stock

S&P futures dropped at 2 a.m. ET, but it had nothing to do with the State of the Union address, which mentioned little that was not previously telegraphed (vague mentions of infrastructure with little detail -- stocks to watch include materials and equipment firms EXP, USCR, MLM VMC, SUM, URI, HEES, HRI and even railroads like NSC, UNP). Attempts to lower drug pricing also was a focus, though details and nods to bipartisanship were scant, and as Raymond James points out, Senate Majority leader McConnell did not clap in support of the idea.

Instead, the little weakness seen this morning, barely down 2 handles of this writing, is coming off disappointing German data, which adds fuel to the idea that the Euro area is indeed slowing as the heart of that economy’s factory orders missed expectations.