The stock market has had somewhat of a blue feeling lately, drifting sideways on a lack of buying energy. Today, though, it should have a blue chip feeling that energizes the market.
The operative word there is should, yet one has reason to wonder if the stock market has already priced in the good earnings news heard from blue chip companies this morning.
We'll find out soon enough.
The early indication is that the broader market will start today modestly higher, underpinned by better-than-expected earnings results from the likes of United Technologies (UTX), Coca-Cola (KO), Verizon (VZ), Lockheed Martin (LMT), Whirlpool (WHR), Harley-Davidson (HOG), and Procter & Gamble (PG).
Those stocks are all indicated higher, with the exception of Procter & Gamble and Verizon.
Separately, Twitter (TWTR) and Hasbro (HAS) also pleased investors with their latest results. They are trading up 7.5% and 15.8%, respectively, in pre-market action, which is going to contribute to the opening gains.
The opening gains, however, won't necessarily measure up to all of the better-than-expected earnings news.
The S&P futures are up two points and are trading less than 0.2% above fair value. The Nasdaq 100 futures are up seven points and are also trading less than 0.2% above fair value. The Dow Jones Industrial Average futures are up 50 points and are trading 0.2% above fair value.
A positive opening indication isn't bad by any means, but one might have expected that there would be a bigger boost given the base of blue-chip support.
Instead, there is a bit of a chippy feeling that continues to overhang the market, which has seen the S&P 500 dance around support at the 2900 level, doing more of a waltz than a jig since clearing that mark on April 12. That was the day JPMorgan Chase (JPM) reported its better-than-expected results.
The S&P 500 closed at 2907.41 on April 12, and yesterday it closed at 2907.97.
For the record, yesterday's close left the S&P 500 up 16.0% for the year versus a 15.7% gain for the Russell 2000, a 17.0% gain for the S&P Midcap 400 Index, and a 20.8% gain for the Nasdaq Composite.
Those gains have been astronomical in one sense, so it's premature to get overly concerned by the lack of a liftoff in the market despite the good earnings news. The buying interest has been subdued, yet the equally cogent counterpoint is that the selling interest has been subdued, too, after an astronomical run.
The market, therefore, is in a sideways drift that will be described in technical terms as a consolidation phase.
The blue chip results are nice to see, yet this market is probably waiting on a stronger directional cue from the response to earnings reports from Facebook (FB) and Amazon.com (AMZN) later in the week.