Major averages rose yesterday on mixed volume that was higher on the NASDAQ Composite as Apple (AAPL) led the way, up another 3.4%. In the process the NASDAQ was able to clear near-term resistance along the lows of its August price range and move within close range of its prior September highs. The S&P 500 remains within a short four-day bear flag as it sits well below its 50-day moving average, in contrast to the NASDAQ which has consistently held above its own 50-day line since last Friday's market sell-off.
US stock market futures are down slightly and European stock markets are lower as Deutsche Bank AB (DB) rejects the U.S. Justice Department’s demand that it pay $14 billion to settle high-profile probes into its packaging of mortgages in the run-up to the financial crisis of 2008.
“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning,” Deutsche Bank said in a statement. DB said it will negotiate a settlement more in line with what other banks have had to pay.
It is doubtful that news regarding DB and the U.S. Justice Department's scuffle is of paramount importance to the markets. Individual stocks continue to act well, even as the indexes have shown a fair bit of volatility throughout the week. This could continue as next week's Fed policy announcement approaches, but we would focus on the action of individual stocks, as the pullback has created some potential opportunities as we indicated in our Focus List Review Market Lab Report sent out mid-day yesterday.