|Day's range||2,973.61 - 3,003.28|
|52-week range||2,346.58 - 3,027.98|
Bottoming bases occur in some new market winners at the end of a severe correction. Here are some tips on how to identify the constructive action.
Wall Street advanced on Tuesday as third-quarter reporting season hit with a spate of upbeat earnings reports that brought buyers back to the equities market. All three major U.S. stock averages gained ground in a broad-based rally, with the S&P 500 and the Nasdaq hitting their highest closing level in more than three weeks. "Positive earnings are flowing through equity markets today, suggesting that things weren't as bad as investors thought," said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis.
Stocks rose Tuesday as some of the first major corporate names began delivering third-quarter results. Meanwhile, investors continued to monitor signs that President Donald Trump’s “phase one” trade deal with China would materialize.
(Bloomberg) -- U.S. stocks touched four-week highs, led by health care and financial shares, as earnings season began in earnest. The pound strengthened as the U.K. and European Union moved closer to a Brexit deal.The Nasdaq Composite Index jumped more than 1.2%, while the S&P 500 topped 3,000 on an intraday basis for the first time in three weeks. Treasury yields rose amid the risk-on backdrop.“Things on the earnings front seem to have gotten off to a pretty decent start, interest rates -- although they’ve perked back up a little -- are still extremely low, and this trade deal and positive Brexit talk are good for world growth,” said Gary Bradshaw, a portfolio manager at Hodges Capital Management. “I like what we see, and the market’s obviously responding well to that.”In earnings news:Johnson & Johnson raised its sales and earnings forecast for the year.UnitedHealth beat profit estimates and raised its full-year outlook.JPMorgan’s third-quarter results beat estimates, sending its shares higher.Goldman Sachs reported investment bank revenue and earnings per share that undershot estimates, but its equities sales and trading was a beat.BlackRock said there was a decline in fixed income inflows from the previous quarter as clients moved some money back into equities.The pound strengthened and gilts fell after two EU officials said negotiators in Brussels are closing in on a draft Brexit deal that could lead to a breakthrough before the end of Tuesday. Crude oil fell for a second day and gol dropped.Japan’s equity gauge jumped as trading resumed after a long weekend during which President Donald Trump announced progress on an interim trade accord with China. Markets elsewhere in Asia were mixed. The Stoxx Europe 600 Index rose, with all 19 sectors advancing.Investors are closely analyzing earnings, given the global backdrop of slowing growth and a host of unpredictable macro risks. The International Monetary Fund made a fifth-straight cut to its 2019 global growth forecast, citing a broad deceleration across the world’s largest economies as trade tensions undermine the expansion.“The earnings reports that will be particularly noteworthy are those from companies that are tied directly to the economic cycle,” said Michael Geraghty, equity strategist at Cornerstone Capital Group.Meanwhile, the Turkish lira jumped and the country’s benchmark stock index rose after Trump imposed milder penalties over its military campaign in Syria than U.S. lawmakers had demanded.Here are some key events coming up this week:Wednesday brings a monetary policy decision in South Korea.U.S. retail sales are forecast to increase for a seventh straight month. Sales in the “control group” are also expected to rise. Consumer spending is carrying the weight of U.S. economic growth so the data will be monitored closely for any signs of slowing.China releases third-quarter GDP, September industrial production and retail sales data on Friday.Here are the main moves in market:To contact the reporters on this story: Claire Ballentine in New York at firstname.lastname@example.org;Sarah Ponczek in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Wall Street jumped on Tuesday as third-quarter reporting season kicked into high gear with a spate of upbeat earnings reports that brought buyers back to the equities market. "It's all going to be about earnings for the next couple of weeks and that's a good thing," said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. Major financial firms JPMorgan Chase & Co, Citigroup Inc, Goldman Sachs Group Inc and Wells Fargo & Co all posted results, as did healthcare giants Johnson & Johnson and UnitedHealth Group Inc.
Investing.com - Stocks surged Tuesday as the first big day of earnings delighted investors, but the rally faded a bit toward the close as profit-taking set in.
Bank earnings came out early on Tuesday, showing signs of strength again, and that of course has the S&P; 500 rallying. The financial sector is of course a significant part of the S&P; 500, so the rally could have been predicted.
Berkshire Hathaway’s returns have lagged the S&P; 500 by a wide margin this year. Buffett has been criticized for not deploying the massive cash pile.
FTSE 100 flat * Wirecard sinks after FT report * Strong earnings help Wall Street open higher Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://email@example.com A BREXIT HIGH BUT STILL NO FAT LADY SINGING AT THE CLOSE (1555 GMT) One thing we know for sure at the close is that many investors are betting good money that the latest round of positive reports on Brexit negotiations will indeed lead to a deal.
FTSE 100 flat * Wirecard sinks after FT report * Strong earnings help Wall Street open higher Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://firstname.lastname@example.org BREXIT BREAKTHROUGH BUZZ BOOSTS MARKETS (1509 GMT) A Bloomberg report suggesting that EU and UK negotiators are close to a deal has just triggered a late afternoon rally across European equity markets.
Investing.com – Stocks jumped Tuesday and the Dow briefly showed a gain of more than 300 points as Wall Street cheered third-quarter earnings.
* European stocks up on fresh Brexit deal hopes * STOXX 600 off highs, +0.6%, FTSE 100 lags as sterling rises * UK midcaps, Irish banks lead gains * Wirecard sinks after FT report * Strong earnings help Wall Street open higher Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://email@example.com CHART SPEAKS: EUROPE WINS THE SMALL-CAP RACE (1414 GMT) Picking a winner between S&P 500 and STOXX 600 is a no brainer, but in stark contrast to that in the small caps space it's Europe who wins it! Europe's outperformance in small caps versus the U.S. equivalent is only by a thin margin, but still it's a win, while the underperformance in the large cap space is staggering (see chart).
Based on the early price action and the current price at 2976.75, the direction of the December E-mini S&P; 500 Index the rest of the session on Tuesday is likely to be determined by trader reaction to the resistance cluster at 2981.75 to 2983.00.
The International Monetary Fund said trade standoffs and geopolitical tensions are behind its tepid projections for global growth in 2019.
Global stocks edged higher on Tuesday yet safe havens were still in play as markets tried to balance fading optimism over the latest China-U.S. trade truce with the likelihood of a Brexit deal by Thursday's European Union summit. MSCI's gauge of stocks across the globe gained 0.2% with European stocks climbing briefly to a two-week high after comments from the European Union's chief Brexit negotiator that a deal with Britain over the terms of their divorce was still possible this week. The pan-European STOXX 600 added 0.4% with France's CAC and Germany's export-oriented DAX both rising while Britain's FTSE slipped 0.3% as sterling rose against the dollar and the euro, reflecting the cautious optimism about talks between Britain and the EU.
Bank of America Merrill Lynch’s monthly fund manager survey revealed some shocking insights about President Trump’s trade war with China. Some 43% of respondents don’t think the trade war will be resolved and view the situation as the “new normal.”
(Bloomberg) -- The S&P 500 could struggle to climb above 3,000 amid a defense by those who have sold options with strikes at or above that level.Schaeffer’s Investment Research is watching the setup of bullish call options on the SPDR S&P 500 ETF Trust, with a focus particularly on that nearby round number. The stock benchmark briefly retook 3,000 on Tuesday before paring gains, and was up 1.1% to 2,998.07 as of 11:15 a.m. in New York. The ETF, ticker SPY, also advanced 1.1% to $299.15.“Big call open interest resides at the 300 strike, equivalent to SPX 3,000, and premium sellers will work to defend a move above this level,” Todd Salamone, senior vice president of research at Schaeffer’s, wrote in a note Monday. “This was evident late Friday, as the SPX sold off in the last 15 minutes of trading after sniffing the 3,000 area. Most of this open interest was bought to open at the 300 strike.”If sellers are unable to defend the $300 strike on SPY, there’s potential for hedging-related purchases that send the ETF to $305, equal to S&P 500 at 3,050, Salamone wrote.He noted that the area of “maximum pain” for option buyers on the SPY -- where the largest number of put and call options expire worthless -- is at $293.Salamone sees low corporate-profit expectations into earnings season and an increase in short interest on S&P 500 members in the past few months as potentially supportive of U.S. stocks moving forward.“With a relatively low bar set with respect to earnings, and more clarity on China-U.S. trade, an unwinding of the six-month build in short interest could be what is needed to push the SPX above the top of its range,” he wrote.(Updates market levels in second paragraph.)\--With assistance from Rita Nazareth.To contact the reporter on this story: Joanna Ossinger in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Ravil Shirodkar, Randall JensenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Analysts at FactSet presented a more bearish outlook, saying as the season kicks into gear this week, S&P; 500 firms are expected to report a 4.6% earnings decline over the same period a year ago.