Courtesy of John Nyaradi.
Stocks and ETFs bounce higher to start the new week
Major U.S. stock indexes and their related ETFs bounced higher on Monday to start the week on a positive note after last week’s sharp sell off.
Markets were bolstered by a better than expected retail sales report and news that the Empire State Index declined again, but not as sharply as in September. However, today’s reading for October came in at -6.2 and was worse than the expected -4.0.
Earnings season is in full swing this week and so those reports will be closely watched along with a full slate of economic reports due to be released. Other issues that could be market movers are the Presidential election and the rapidly approaching “fiscal cliff,” both of which add an element of uncertainty to short term market action. Citigroup rose sharply today as markets liked its earnings reports.
On a technical basis, it was a lackluster day as the S&P 500 (NYSEARCA:SPY) rose to recent resistance levels and momentum and relative strength marginally improved.
chart courtesy of Stockcharts.com
Major Index ETFs:
Dow Jones Industrial Average (NYSEARCA:DIA) +0.72%
S&P 500 (NYSEARCA:SPY) +0.8%
Nasdaq 100 (NYSEARCA:QQQ) +0.73%
Russell 2000 (NYSEARCA:IWM) +0.63%
Other major asset classes saw gold (NYSEARCA:GLD) decline 1% and oil (NYSEARCA:USO) mostly flat with West Texas Intermediate Crude rising 0.13% to $91.75/bbl.
Tomorrow brings consumer prices, industrial production and home builder’s reports while earnings reports continue to flow in with notables Coca Cola, Goldman Sachs and Intel due to report.
Bottom line: Major U.S. indexes and ETFs bounced back from last week’s steep drops to remain in the recent trading range as investors look to earnings, economic reports and political factors that could offer risk or opportunity going forward.
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