Commentary: Paul Ebeling on Wall Street
$DIA, $SPY, $QQQ, $RUTX
Columbus Day in the USA, Banks are Closed, Market is Open
The market’s focus this week: Earnings
Yes, it is earnings reporting season again, this frame always commands a great deal of attention because earnings drive stock prices over the long term. To that end, the S&P 500 has been on cruise control for a while now, underpinned by impressive earnings growth.
The Q-3 reporting period, which begins in earnest this Friday with reports from JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC), should be no different.
The earnings growth should be impressive.
The Big Q: Will the guidance be impressive too?
There are some concerns that it may not be, which is why the Q-3 reporting frame, and the market’s reaction to it must be watched closely.
According to FactSet, the estimated Q-3 earnings growth rate for the S&P 500 is 19.0%, which means S&P 500 companies are on track to print the 3rd best Quarter of earnings growth since Q-1 of Y 2011.
That is why it can be said Q-3 is likely to produce another Quarter of impressive growth.
Expectations have been tempered a bit then since Q-3 began, but they are on the high side, stay tuned more to come.
And always remember, do your own work, tune out the noise and take what the market gives.
|THIS WEEK’S MAJOR US ECONOMIC REPORTS|
|MONDAY, 8 October|
|TUESDAY, 9 October|
|6 am||NFIB small-business index||Sept.||—||108.8|
|WEDNESDAY, 10 October|
|8:30 am||Producer price index||Sept.||0.2%||-0.1%|
|10 am||Wholesale inventories||Aug.||—||0.6%|
|THURSDAY, 11 October|
|8:30 am||Weekly jobless claims||10/6||206,000||207,000|
|8:30 am||Consumer price index||Sept.||0.2%||0.2%|
|8:30 am||Core CPI||Sept.||0.2%||0.1%|
|2 p m||Federal budget||Sept.||—||$8 bln|
|FRIDAY, 12 October|
|8:30 am||Import price index||Sept.||—||-0.6%|
|10 am||Consumer sentiment index||Oct.||100.6||100.1|
Last week we saw a test of the DJIA 50-Day MA and a bounce, while pundits called for a market melt down, the indexes found support, and individual stocks did too, and held.
The Bulls Vs The Bears
DJIA at the 20-Day MA, S&P 500 at the 50-Day MA, S&P 400, RUTX at the 200-Day MA, tapping it at the low, and bouncing.
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Neutral (-0.09)||Neutral (-0.07)||Neutral (0.12)||Bearish (-0.33)|
HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 5 October 2018
Have a terrific week