Week-In-Review: Stocks End Mixed As Earnings Season Begins

Byinfo@50park.com

Stocks End Mixed As Earnings Season Begins

The broader indices ended mixed while small cap stocks tried to breakout last week as earnings season officially began. Just to recap the first full week of earnings, the data is mixed. So far, nearly all of the big banks reported earnings, and nearly all of them, except for Morgan Stanley, fell on the day they reported. That weighed on the Dow and S&P 500 as investors digested the data. Elsewhere, Netflix jumped to a fresh record high after reporting a big jump in subscribers. Meanwhile, Qualcomm, Microsoft, and eBay all fell after reporting earnings. The good news for the bulls is that the market remains exceptionally strong and the major indices are trading just below their record highs.

Mon-Wed Action:

Stocks rallied on Monday helping the Nasdaq post a 7-day win streak as earnings season continues in droves. So far, analysts are expecting Q2 earnings to grow by +6.2%. Stocks were mixed on Tuesday as the Nasdaq rallied while the Dow fell. Bank of America and Goldman Sachs both fell after reporting earnings while shares of Netflix soared after reporting a big jump in subscribers. On Wednesday, the major indices hit new highs on the back of the latest round of earnings. Elsewhere, Housing starts vaulted +8.3% last month, hitting their highest level since February 2017. Separately, Mortgage applications, rose +6.3%.

Thur & Fri Action:

On Thursday, stocks were quiet as investors digested the latest meeting from the European Central Bank (ECB) and waited for the latest round of earnings to be released. Separately, Bloomberg reported that special counsel Robert Mueller is looking into the business dealings of President Donald Trump, Jared Kushner and other associates. This comes a day after Trump warned Muller against it during an interview with the New York Times on Wednesday. Stocks fell on Friday as investors digested the latest round of earnings data. General Electric (GE), Microsoft (MSFT), eBay (EBAY), and a few other well known stocks fell hard after reporting earnings.

Market Outlook: All Eyes On Earnings

The bulls showed up and defended important support in June which is very bullish for the market. As we have said several times over the past month, as long as support holds, the bulls remain in control of this market. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…

Similar Posts

  • Day 1 Of A New Rally Attempt

    Byinfo@50park.com

    Wednesday marked Day 1 of a new rally attempt which means that the earliest a possible follow-through day (FTD) could emerge will be Monday. However, if at anytime, Wednesday’s lows are breached then the day count will be reset. The technical action in the major averages and the latest round of economic data bodes poorly for the market and the global recovery. Currently, resistance for the the major averages are their 50 DMA lines, then their longer term 200 DMA lines while support remains July’s lows. It is also disconcerting to see the action in several leading stocks remain questionable as evidenced by the dearth of high-ranked leaders breaking out of sound bases. Monday’s negatively reversal coupled with Tuesday’s ugly distribution day effectively ended the latest rally attempt. This emphasizes the importance of remaining cautious until the rally is back in a confirmed uptrend. Put simply, we can expect this sideways/choppy action to continue until the market breaks out above resistance or below support. The first scenario will have bullish ramifications while the second will be clearly bearish. Trade accordingly.

  • S&P 500 Has Rallied in 10 Of The Past 11 Weeks

    Byinfo@50park.com

    Friday, March 15, 2013 Stock Market Commentary: Not much changed last week as the riskon trade is alive and well as the major averages continue racing higher. The last pullback was shallow in size and scope. The S&P 500 pulled back 2.9% after the minutes from the Fed’s last meeting hinted that QE might end sooner than originally  expected….

  • Global Markets Are Smacked!

    Byinfo@50park.com

    Market Outlook- Rally Under Pressure
    From our point of view, the market rally is under pressure which suggests caution is paramount at this stage. We would be remiss not to note that a slew of leading stocks suffered heavy distribution earlier this week which is not ideal. If you are looking for specific help navigating this market, please contact us for more information.
    Want Better Results?
    You Need Better Ideas!
    We Know Markets!
    Learn How We Can Help You!

  • Stocks End Volatile Week Higher

    Byinfo@50park.com

    Market Action- Confirmed Rally; Week 27
    It was encouraging to see the bulls show up and defend the major averages’ respective 50 DMA lines in November, January, and late February and early March. From our point of view, the market remains in rally-mode until those levels are breached. The tech-heavy Nasdaq composite and small-cap Russell 2000 indexes continue to lead evidenced by their shallow correction and strong recovery. If you are looking for specific high ranked ideas, please contact us for more information.
    Are You Looking For Someone To Manage Your Money?
    Our Private Wealth Management Services Can Help You!

Leave a Reply

Your email address will not be published. Required fields are marked *