Although there have been quite a few warnings, we’ve had a pretty strong start to earnings season. And today it was bank earnings helping the major indices finish the day at 4-week highs.
The day began on a positive note, with the major indices higher at the open.
But after the positive start and a morning rally, stocks pulled back and traded sideways for the next 3 1/2 hours.
Then around 2:30pm ET, stocks rallied to session highs. It looked like stocks were ready to move, but a pullback in the last 30 minutes of the day erased a large portion of today’s gains.
With today’s rally, the S&P joined the DOW and NASDAQ in a move above their 50-day moving averages. The NASDAQ closed above its 50-day moving average yesterday, and the DOW managed to close above this key level today.
Although the S&P traded above the 50-day moving average for the first time since December 4th, the index wasn’t able to close above this level. The 50-day moving average is a popular indicator for technical traders that is often used as support and resistance.
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Here’s where the major indices ended the day:
- The S&P finished with a 0.2% gain. Up 6 points, the S&P ended at 2,616.
- The DOW ended higher by 0.6%. Adding 142 points, the DOW closed at 24,207.
- The NASDAQ was up 0.1%. With a 9 point gain, the NASDAQ finished at 7,033.
- Bitcoin finished higher by 1.0%. Up $35, Bitcoin ended at $3,555.
Crude Oil (CL) finished higher for the 2nd day in a row. Up 0.3%, CL ended at $52.29 a barrel.
All eyes were on earnings today, and bank stocks did great.
Bank of America (BAC) beat expectations and finished higher by 7.2%. Goldman Sachs (GS) helped the DOW lead the major indices today, after jumping 9.5% on an earnings beat.
United Continental (UAL) was an earnings winner as well. The stock finished higher by 6.4% after better than expected numbers.
But an earnings warning sent Nordstrom (JWN) lower. The company said that full-year earnings are expected to be lower after weaker than expected holiday sales. The stock ended the day with a 4.8% loss but came back from a 8.9% deficit.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
Source: cnbc.com | Original Link
