Due to some technical issues I cant get a video out tonight. The stock market rose on Friday, with the S&P recovering 3.8% for the week, on favorable earnings from Microsoft Corp (MSFT) and Procter & Gamble (PG). The Dow was up 128, or 0.8%, to 16,805. The Nasdaq gained 31, or 0.7%, to 4,484, while the S&P 500 advanced 14, or 0.7%, to 1,965. Advancing issues outnumbered decliners by a more than 3-to-2 ratio on the NYSE, where volume was light.
Traders think that the likely containment of the Ebola virus has enabled investors to focus on earnings.Earnings have been decent, with 205 of the companies in the S&P 500 having reported, 70% have exceeded expectations, above the twenty-year average of 64%. It also helped that the likes of Microsoft, Procter & Gamble and UPS reported solid earnings on Friday.” Keep in mind though, that the bar was very low.
All of the worries about slowing global GDP, Middle East tensions and Ukraine were off the radar this week, and investors instead were focused on positive comments from the Federal Reserve and impressive earnings numbers. The cat was out of the bag with regard to the Fed, thanks to its “non-comment” on last week’s comments from James Bullard that it might reconsider ending the bond purchases that were set to end in October. Bullard’s comments sent stocks soaring, and then we had the “double-whammy” of enough impressive earnings numbers to light the fire under a stock market that had “corrected” downward by about 8% for the S&P 500.
The technicals on the four major indices all look bullish. but keep in mind that the SPX is about a point from its 50 day moving average. This could be a fail spot or it could just blast right through it.
I have two new adds for tonight.
ACAD- Buy the 27.20 level.
GIL– Buy the 58.70 level. Bull flag in process. Thin name.
