Market Rallies On Positive Economic Data! SPX, Nasdaq, TSL, YGE, STP, FMCN, CHU, CYD, HMIN, SBUX, NILE

This morning, the jobless claims numbers were much less than expected.  Adding to CSCO’s positive outlook from last night, the market was in a rallying mood from the open.  In our Trading Room, I commented:

November 5, 2009 6:58 AM
good morning!

market
nice economic data this morning; market should have a solid day to test SPX 1060 to 1070 region.

Indeed, SPX closed at 1066.65 today.  The Dow went all the way to close above that 10,000 mark!  Last night, in my evening article, I said, "One thing to note is that FXI (Chinese ADRs) gained +1.5%.  The Chinese stock market has regained its footing and could be ready to test the high set back in August this year."  FXI (Chinese ADRs ETF) added another +2.36% today.  Among the top winners in Chinese stocks were:  TSL +6.22%, YGE +2.95%, STP +3.93%, FMCN +4.7%, CHU +4.23%, HMIN +5.97%, CYD +5.43%.

After the market, Blue Nile (NILE), an online jewelry company, reported rising sales and a higher profit for 3Q.  NILE shares went up +3.88% in after-hours on top of the +3.76% gain in the regular session.  SBUX raised its earnings target for 2010 along with a quarterly report that beat the estimates.  SBUX shares traded +3.86% higher this evening on top of the +2.55% gain during the day.

The Dow finished up +203.82 points; SPX added +20.13 points; Nasdaq jumped +49.80 points:

As expected GLD (gold) and SLV (silver) were flat (see last night’s article).  Techs were strong with INX2 gaining +3.25% and SOXX (semiconductors) adding +2.59%.  XME (metals and mining) advanced +3.15%.  OIH (oil services) was up +2.04%.  PBW (clean energy) hopped +3.85%.  XLF (financials) rose +2.57% while HGX (housing) tacked on +2.77%.

SPX

SPX added +20.13 points to close at 1066.63.  It closed above the 30-day MA.  Its MACd turned up.

Nasdaq

Nasdaq jumped +49.8 points to close at 2105.32.  It closed above the 10-day MA.  The MACD turned higher.

I think it is interesting to see how well Blue Nile and Starbucks did this quarter.  Blue Nile further confirms what Amazon (AMZN) reported just two weeks ago, that consumers are shopping more and more online!  Both companies are seeing a strong holiday season.  Further, Blue Nile demonstrated that people are still buying jewelry!  What Starbucks reported is perhaps even more interesting.  Consumers are more willing to spend money on gourmet coffee again.  These are certainly encouraging data for the economic recovery.  Tomorrow, the market will get more jobs data including the unemployment rate.  Consumer credit will also be reported in the afternoon.  VIX came further down today, but, still closed above 25.  We’ll see if the unemployment rate report can confirm the positive trend set by the recent slew of better economic data.

Good night and HappyTrading! ™