The Trump Rally Extends, Autos, Airlines Advance

The Trump Rally Extends, Autos, Airlines Advance

The Trump Rally Extends, Autos, Airlines Advance

$DIA, $SPY, $QQQ, $VXX

  • US economy growing under US President Trump’s developing economic policies.

The major US stock indexes posted record high closes Tuesday, helped by gains in airlines and as carmakers rose after strong September vehicle sales.

Major automakers posted higher US new vehicle sales in September as consumers in hurricane-hit parts of the country replaced flood-damaged cars.

  • General Motors (GM 43.45, +1.30) sold 279,397 units (+12.0% Y-Y)
  • Ford Motor (F 12.34, +0.25) sold 222,248 units (+8.7% YoY)
  • Fiat Chrysler (FCAU 17.96, +0.01) sold 174,266 units (+10.0% Y-Y)
  • Toyota Motor (TM 120.34, +1.03) sold 226,632 units (+14.9% Y-Y)
  • Honda Motor (HMC 30.20, +0.42) sold 142,772 units (+6.8% Y=Y)

Airline shares were among the biggest positives in the S&P 500. Delta Air Lines (NYSE:DAL), also the S&P 500’s Top percentage gainer, jumped 6.6% after it reported that its “cargo ton miles” metric rose 9.4% in September from a year earlier.

The S&P 1500 airlines index was up 5.5% on the day.

The news was the latest evidence of economic growth under US President Trump’s developing economic policies. The signs, including factory data Monday, have helped lead the market to recent record highs and boosted shares of economically sensitive companies including in materials and industrials.

The S&P industrials index was up 0.5% and among sectors with the biggest gains Tuesday lifted recently by optimism about tax law overhaul prospects.

Investors are looking at upcoming Quarterly earnings from major US companies to help justify the high market valuations.

Q-3 earnings for S&P 500 companies are expected to have risen 5.5% from a year earlier, according to Thomson Reuters research, after rising a stronger-than-expected 12.3% in Q-2.

Tuesday, the US major stock market indexes finished at: DJIA +84.07 at 22641.67, NAS Comp +15.00 at 6531.72, S&P 500 +5.46 at 2534.58

Volume: Trade on the NYSE come in moderate at: 725-M/shares exchanged.

Breadth: Advancing issues outnumbered declining ones on the NYSE by a 1.30-to-1 ratio.

  • NAS Comp +21.3% YTD
  • DJIA +14.3% YTD
  • S&P 500 +13.2% YTD
  • Russell 2000 +11.4% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.54) Very Bullish (0.65) Very Bullish (0.50) Bullish (0.49)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.49) Very Bullish (0.54) Bullish (0.44) Very Bullish (0.50)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.28) Neutral (0.15) Bullish (0.31) Bullish (0.39)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.46) Bearish (-0.43) Bearish (-0.29) Very Bearish (-0.67)

Stay tuned…

 

 

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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