In my Market Forecast this weekend, I said to watch for the market to pull back to test SPX 1200. The market did that late yesterday and early this morning. Then, buyers came in. Financials were really strong today: GS +5.52%, C +6.98%, BAC +10.12%, WFC +5.9%. Last night, IBM delivered a solid report, but, did not beat the estimates. IBM shares fell 4.12% today. VMW rose +8.2% today on quarterly results that more than doubled.
After the market, AAPL disappointed investors with a rare earnings miss! Its shares tumbled more than $28! INTC delivered a strong quarter and was up +4.36%. ISRG once again surprised on the upside, sending its shares up +7.77%. JNPR was little changed after reporting a good quarter.
The Dow was up +180.05 points; SPX added +24.52 points; Nasdaq gained +42.51 points:
XME (metals and mining) gained +4.11%. XLE (energy) added +3.21%. XLF (financials) led the market with a +4.75% pop. MOO (agriculture) climbed +2.12%.
SPX added +24.52 points to close at 1225.38. The MACD and daily MAs glided up.
Nasdaq gained +42.51 points to close at 2657.43. Its daily MAs and MACD went up.
The market reversed its course this morning and ended solidly higher. Thanks to encouraging news from Europe. Banks definitely benefitted from the news. Besides the banks, energy and mining stocks all saw renewed strength. In the past couple of weeks, techs have led the market. But, techs along have not been able to break the market out of its trading range. Just when other sectors are getting a little stronger, AAPL came in with a surprise miss. So, can the market overlook AAPL's seemingly soft earnings? Will buyers come in tomorrow and snatch up AAPL shares under $400? Possibly. VIX tesed 30 again and bounced back, again; it is still showing caution. We'll be watching the financials and the commodity sectors for an answer. Techs will run in a strong market. But, this market will need other major sectors to participate in order to break out of this trading range.
Good night and HappyTrading! ™