Daily Wrap

DJIA +111.90 (+0.77%) to 14,559.65; S&P 500 +12.08 (+0.78%) to 1,563.77; NASDAQ +17.18 (+0.53%) to 3,252.48

Today started with a gap higher that consolidated and then continued until the end of the day. We also saw a fair amount of economic data and the results were mixed with better home prices and durable goods but worse consumer confidence and new home sales.  Despite the amount of data, today’s move seemed more about a bias of the market to go higher than it was anything that was announced.

Goldman Sachs (GS) announced that it amended its warrant agreement with Berkshire Hathaway (BRK.A) which allows GS to settle using shares instead of cash.  Warren Buffett commented about the deal stating “We intend to hold a significant investment in Goldman Sachs.”  GS closed slightly higher on he news but verall could be setting up for higher prices but needs to hold the $144. 68 recent lows.  Considering how far away the 200 day SMA is, I would prefer GS spend more time consolidating before trying to make a next move.

Sonic (SONC) moved higher by nearly 10% after reporting earnings.  SONC  looks like it could be due for a rest around here but after a consolidation this name could be ripe for higher levels.  This is one I will be keeping an eye on.

The following noteworthy companies are scheduled to report earnings before tomorrow’s open: NEOG, PLCE, CHOP, PATH

This was back to the action I expected and I think it is very likely we could continue to see upside action into the Good Friday holiday.  If we can continue to build on today’s action then next week might provide an opportunity for the markets to take a rest and depending on how that manifests might govern how long and how deep that rest takes.