Stocks closed higher for a second straight day as the latest batch of third-quarter earnings rolled in.
Goldman Sachs (GS, +2.3%) continued a trend seen in big bank earnings recently, reporting higher-than-expected top- and bottom-line results for its third quarter. Defense contractor Lockheed Martin (LMT) was another post-earnings winner, climbing 8.8% after Q3 profit came in higher than expected.
On the economic front, the National Association of Home Builders (NAHB) housing market index, which measures sentiment among homebuilders, fell to 38 in October from September's reading of 46. This came in well below economists' consensus forecast of 43 and helped alleviate some of the anxiety over the Fed's rate-hike plans.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"The U.S. housing market is the most interest-sensitive sector of the economy and the housing market is reflecting the strong increase in interest rates engineered by the Federal Reserve," says Eugenio Alemán, chief economist at Raymond James. "Higher mortgage interest rates are doing what they are expected to do: reduce the pool of potential homebuyers and weaken the U.S. housing market."
While the major market indexes finished well off their intraday highs, they still ended the day with solid gains. The Dow Jones Industrial Average closed up 1.1% at 30,523, the S&P 500 Index gained 1.1% to 3,719, and the Nasdaq Composite added 0.9% to 10,772.
Can the Rally Keep Going? The Charts Say Yes.
So how long will this rebound last? No one knows for certain, but there are several reasons to believe the rally could have legs. For one, the October-to-December period is a historically positive one for stocks. Since 1928, the S&P 500 has averaged gains of 0.5% in October, 0.8% in November and 1.4% in December, according to Yardeni Research.
Plus, midterm election years tend to be bullish for the stock market – no matter who wins in Congress. What's more, technical analysis, or the study of charts, is hinting at more upside to come. "While economic conditions have not changed – and therefore do not warrant a shift in the cyclical outlook – technical conditions are pointing to a potential rebound," BCA Research says in a note to clients. Read on to see what else they and other technical strategists are saying about the stock market's recent run higher.
-
The Fall Garden 'Tax': What to Plant and How to PrepareTax Tips Fall gardening could increase your taxes this season. Here’s what to know while planting in 2025.
-
July CPI Report Boosts Rate-Cut Odds: What the Experts SayThe July CPI report shows that tariffs are having a slight impact on inflation, though not enough to keep the Fed from cutting interest rates.
-
July CPI Report Boosts Rate-Cut Odds: What the Experts Say
The July CPI report shows that tariffs are having a slight impact on inflation, though not enough to keep the Fed from cutting interest rates.
-
Stocks Slip Ahead of July CPI Report: Stock Market TodayThe latest inflation updates roll in this week and Wall Street is watching to see how much of an impact tariffs are having on cost pressures.
-
Nasdaq Ends the Week at a New High: Stock Market TodayThe S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
-
Stocks Swing Lower as Eli Lilly, Fortinet Spiral: Stock Market TodayThe main indexes finished well off their session highs after a disappointing batch of corporate earnings reports.
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
Stocks Rally on Apple Strength: Stock Market TodayThe iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
Rally Pauses for Hot Earnings, Cool Data: Stock Market TodayMarkets were mostly mixed Tuesday after decisive moves Friday and Monday.
-
Dow Rises 585 Points on Rate Cut Hope: Stock Market TodayStocks moved more than 1% again Monday, this time to the upside following the Jobs Friday sell-off.
