DJIA + 547.87 On Strong Q-3 Earnings Reports

DJIA + 547.87 On Strong Q-3 Earnings Reports

DJIA + 547.87 On Strong Q-3 Earnings Reports

$DIA, $SPY, $QQQ, $RUTX, $VXX

  • The S&P 500 cut through its 200-Day MA, closing 2.2% higher and reducing its October loss to 3.6%.

Tuesday, US  stocks rose more than 2% after upbeat earnings reports from major companies, and solid economic data, as equities rebounded from last week’s pull back.

Wall Street’s 3 major indexes tallied their biggest 1-day percentage gainer since March. The small-cap Russell 2000 recorded its biggest single-session gainer in nearly 2 years.

Technology led the gains as all 11 major sectors finished in the Green.

Investors are expecting another strong Quarter of corporate profits, hoping the reports can calm nerves following concerns over global trade tensions and rising bond yields. Q-3 earnings for S&P 500 companies are expected to have climbed 21.8%, according to I/B/E/S data from Refinitiv.

The reversal that began last Friday marked a partial recovery from the pullback from record highs.

The technology sector gained 3.0%, while healthcare rose 2.9%. Those 2 groups have led the S&P 500’s advance this year.

Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:GS) reported better-than-expected Quarterly profits, helped by strength in stock trading and equity underwriting, wrapping up a strong Quarter for the big US banks. Goldman shares rose 3.0%, while Morgan Stanley shares gained 5.7%.

In healthcare, shares of diversified product company Johnson & Johnson (NYSE:JNJ) rose 1.9%, while insurer UnitedHealth Group gained 4.7% following their respective Quarterly reports.

After the market closed, shares of Netflix (NASDAQ:NFLX) is trading up following the streaming video company’s report.

In economic data

US industrial production increased for a 4th month running in September, boosted by gains in manufacturing and mining output, while other data showed job openings hit a record high in August.

Tuesday, the major US stock market indexes finished at: DJIA +547.87 at 25798.42, NAS Comp +214.75 at 7645.68, S&P 500 +59.13 at 2809.76

Volume: 7.5-B/shares changed hands in US exchanges

Advancers outnumbered decliners on the NYSE by a 5.17-to-1 ratio. On the NAS, a 4.02-to-1 ratio favored advancers.

The S&P 500 posted 5 new 52-wk highs and 7 new lows; the NAS Comp recorded 17 new highs and 76 new lows.

  • NAS Comp +10.8% YTD
  • S&P 500 +5.1% YTD
  • DJIA +4.4% YTD
  • Russell 2000 +4.0% YTD

HeffX-LTN’s Major US Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
16 October 2018 QQQ 177.22 Neutral (-0.21) 174.95 178.55
16 October 2018 DIA 257.92 Neutral (0.07) 257.91 259.65
16 October 2018 SPY 280.4 Neutral (-0.23) 279.14 282.06

 

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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