Yesterday, the market eked out a small gain, ahead of IBM and TXN's earnings. Then, both IBM and TXN disappointed investors with their quarterly reports. Today, the market open gapped down, but, started to bounce almost immediately. Both BTU and STLD delivered solid earnings and commodity sectors soon bounced strongly. Miners did especially well: CLF +8.19%, X +7.45%, FCX +5.69%, WLT +6.07%.
After the market, AAPL blew away its earnings estimates, making $3.51/share vs. the consensus of $3.11/share. AAPL shares traded about +3% higher in after-hours. VMW also gave a stellar report and a rosy guidance going forward. VMW shares went up +3.56% this evening. CRUS also reported nicely this morning and traded higher after AAPL's report. SNDK and BRCM also saw some additional buying.
The Dow finished up +75.53 points; SPX added +12.23 points; Nasdaq gained +24.26 points:
XME (metals and mining) led the market with a +4.42% jump. OIH (oil services) was very strong, up +3.38%. MOO (agriculture) added +2.47%. XLF (financials) was up +1.06%. FXI (Chinese ADRs) bounced +2.74%.
SPX
SPX added +12.23 points to close at 1083.48, above the 1080 level. It also closed above its daily MAs. Its MACD went up.
Nasdaq
Nasdaq gained +24.26 points to close at 2222.49, above the 2200 level. It closed above its daily MAs as well, and the MACD went higher.
This market has been churning. It still seems very undecided and is staying range-bound. VIX has also been moving up-and-down within a tight range. It closed below the 24 level today. It is certainly encouraging to see the market brushing aside IBM and TXN earnings and traded up ahead of AAPL's earnings. We'll have to see if the gains made this evening can translate into continued upwards momentum tomorrow. WFC and FCX will report tomorrow morning and many more after the market, including NFLX, FFIV, QCOM, and SBUX. The market has been jerked around by earnings reports, and it will need to clear above SPX 1100 to get any sustainable upwards momentum.
Good night and HappyTrading! ™
Disclosure: no positions