Mid-Session Update The SPX is +1.00% and NDX +1.94% at midday....

Mid-Session Update

The SPX is +1.00% and NDX +1.94% at midday. Communication Services, Tech and Health Care are leading. Overnight ESH19 SPX futures made a high is of 2600.25 and a vpoc for the past few sessions is now 2585, which becomes a general level of support. Less than expected earnings from JPM and warnings from DAL plus the specter of more earnings weakness did not dissuade bulls from buying the dip provided by the overnight ES participants. Nor did a weak PPI index report of -0.2% for headline and -0.1% for Core PPI which excludes energy. This is thought to be partially due to lower energy prices. The latter report basically puts the Fed floor under stocks even as it gels with the Empire State Manufacturing survey which came at 3.9 vs 11.5 for December and also enhanced the concept of slowing growth.

NYSE A-D lines: +674. NYSE breadth: 1.47:1 and NASD breadth: 2.59:1.

At mid-session, VIX is 18.11 or -5.03%. Treasuries are on the back foot, with unchanged mid curve issues behind the 30-year bond which is now up +1 bp yielding 3.07%.

A bounce in the USD index DXY (96.200 or +0.63%) and volatility in GBP/USD is putting some pressure on GCG19 February gold ($1288.30 or -0.25%), which is still dealing with the pocket between its 5 and 10 day moving averages and the 61.8% retrace from August lows. USEIA raises oil demand forecast and US production increase as well as upward revisions to the bpd for 2018. CLG19 is trading at 51.83 up +2.63%, which his helping the energy sector.

11:43 ET -- Fed's Kashkari: No need to tap breaks on the economy as long as inflation is low. He says that there is no need to raise rates further and that he has not seen investment boom in the real economy. ES futures and SPX have now moved above the much feared and anticipated 2603 on those comments. We have another Fed speaker in a few minutes from now.