Stocks Higher into Final Hour on Falling Energy Prices and Stabilizing Long-term Rates

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Semi longs, Medical longs, Retail longs and Energy-related shorts. I covered the remainder of my (IWM) and (QQQQ) shorts today, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, sector performance is positive and volume is above average. Quanta Services (PWR) is trading up 7.4% today, to a 4-year high of around $18. Quanta beat first-quarter consensus estimates by 133%. The firm exceeded revenue estimates by 10.4% and raised 2Q guidance. I expect increased spending by utility companies on transmission infrastructure, accelerating spending by telecom companies on FTTP and hurricane rebuilding to continue to propel estimates above expectations this year. I will wait for a pullback in the shares before adding to my current long position. I expect US stocks to trade mixed into the close from current levels as falling energy prices offset profit-taking ahead of tomorrow’s employment report.