Stock Market Today: Goldman Earnings Give Stocks a Boost
Meanwhile, the NAHB housing market index fell sharply in October.
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.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Stock Market Today: Markets Rebound Ahead of Big Week for Earnings
Equities rallied on easing geopolitical tensions, upcoming quarterly results.
By Dan Burrows Published
-
A Financial Checklist for Widows
An interview with a financial adviser about the financial steps widows should take.
By Janet Bodnar Last updated
-
Stock Market Today: Markets Rebound Ahead of Big Week for Earnings
Equities rallied on easing geopolitical tensions, upcoming quarterly results.
By Dan Burrows Published
-
Stock Market Today: Nasdaq Spirals as Netflix Nosedives
A big earnings boom for credit card giant American Express helped the Dow notch another win.
By Karee Venema Published
-
Stock Market Today: S&P 500, Nasdaq Extend Losing Streaks
The two indexes have closed lower for five straight sessions.
By Karee Venema Published
-
Stock Market Today: Dow Slips After Travelers' Earnings Miss
The property and casualty insurer posted a bottom-line miss as catastrophe losses spiked.
By Karee Venema Published
-
Stock Market Today: Stocks Stabilize After Powell's Rate-Cut Warning
The main indexes temporarily tumbled after Fed Chair Powell said interest rates could stay higher for longer.
By Karee Venema Published
-
Stock Market Today: Stocks Reverse Lower as Treasury Yields Spike
A good-news-is-bad-news retail sales report lowered rate-cut expectations and caused government bond yields to surge.
By Karee Venema Last updated
-
Stock Market Today: Nasdaq Leads as Magnificent 7 Stocks Rise
Strength in several mega-cap tech and communication services stocks kept the main indexes higher Thursday.
By Karee Venema Published
-
Stock Market Today: Stocks Tumble After a Hot Inflation Print
Equities retreated after inflation data called the Fed's rate-cut plans into question.
By Dan Burrows Published