Stock prices advanced broadly on Thursday as investors stepped up buying turning yesterday's sell off into a temporary blip. Markets were buoyed by pleasing earnings from Walmart and Cisco. Also the House Republicans passed its $5.5 trillion tax bill moving it a step closer to a near-historic legislative tax overhaul.
Treasurys and dollar fall back as stocks gathered steam for the biggest gain in two months. The Bloomberg Dollar Spot Index nipped below 0.1%. The euro fell 0.2% to $1.1769 while the pound rose 0.1% to $1.3182. Intermediate crude decreased 0.31% to $55 a barrel where it has roughly held over the last two days. Investors are waiting to see if OPEC extends its output cuts at its 30 November meeting.
Wal-Mart led gainers striding up +10.92% after its better-than-expected earnings beat. Cisco also delivered an earnings beat rising +5.19%. The Dow was up +0.80% and was up +7.85% over three months and ten out of 12 sectors made gains. Defensive sector energy fell again on Thursday as slumping oil prices continue to weigh along with utilities. The S&P 500 advanced +0.82% within striking distance of its record close of 2,597.02 as technology stocks rallied. NASDAQ also rose +1.30%. Amazon and Apple were both up +0.94% and +1.19% at close.
- Dow 23,458.01 +0.80%
- S&P 500 2,585.67 +0.82%
- NASDAQ 6,793.31 +1.30%
- Russell 2000 1,487.35 +1.59%
- NYSE Composite 12,305.23 +0.69%
- Gold 1,278.5 +0.06%
- Oil WTI $55.17 -0.31% (4:01PM EST)
- 10-Year Treasury 2.36 -0.37%
Earnings and good economic data are what move markets according to market experts and the tech bull run is running on such feel-good earnings. NASDAQ performance is up +9.18% over the last three months and +26% year to date.
Gina Martin Adams, chief US equity strategist, Bloomberg Intelligence said on Bloomberg TV she remained optimistic about technology stocks in the future: " For tech frankly I think tech held up really well over the last few days. The breadth indicators on the NASDAQ have been extremely negative suggesting that we probably will see a greater sell off in tech emerge."