This morning, Goldman Sachs (GS) reported stronger-than-expected earnings. But, since the financials jumped so much yesterday, investors locked in profits and traded the sector lower. GS slipped 1.9% for the day. However, energy stocks were very strong, as oil reached a new year-high at almost $78/barrel. Oil services were especially strong: SLB +4.16%, DO +3.35%, NOV +4.23%, HAL (reporting tomorrow) +2.26%.
After the market, both IBM and GOOG delivered solid earnings. GOOG shares jumped +3.23% while IBM shares retreated 3.87%, in the after-hours trading.
The Dow was up +47.08 points; SPX added +4.54 points; Nasdaq gained +1.06 points:
SOXX (semiconductors) slipped 1.41%. BTK (biotechs) added +0.69%. Commodity sectors did better today: OIH (oil services) +2.53%, XME (metals and mining) +0.86%, XLE (energy) +2.09%. Both USO (oil) and UNG (natural gas) went higher. However, GLD (gold) and SLV (silver) took a breather. FXI (Chinese ADRs) was flat.
SPX
SPX added +4.54 points to close at 1096.56. Its 10-day MA went above the 20-day MA. The MACD was higher.
Nasdaq
Nasdaq gained +1.06 points to close at 2173.29. Its daily MAs and MACD went up.
Both SPX and Nasdaq have started climbing higher along their respective daily upper BBs. The 10-day MA is crossing above the 20-day MA establishing a new "bullish" formation. The MACD is also seeing a new bullish crossover. The market has gone quite far in the past 2 weeks with only a brief pause earlier this week. BAC is reporting tomorrow morning. If BAC reports well, we should see the financials rally again, which should help SPX reach 1100. GOOG earnings could inspire buying in the internet sector. But, since tomorrow is Friday, and, the last trading day for October options, don’t be surprised if we see some profit-taking in the afternoon. It will likely be a volatile day tomorrow.
Good night and HappyTrading! ™
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