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.
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"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.
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Dow Gains 664 Points as Rate-Cut Hopes Rise: Stock Market TodayMarkets are pricing in higher odds for a December rate cut, fueling a major rally in stocks ahead of the Thanksgiving holiday.
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Nasdaq Rises 2.7% as Musk Tweets TSLA Higher: Stock Market TodayMarkets follow through on Friday's reversal rally with even bigger moves on Monday.
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Dow Soars 493 Points in Fed-Fueled Bounce: Stock Market TodayNew York Fed President John Williams struck a dovish tone Friday, which eased Wall Street's worries over a potential December pause.
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Dow Erases 717-Point Gain to End Lower: Stock Market TodayThe main indexes started the day with solid gains, but worries of an AI bubble weighed on stocks into the close.
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The Delayed September Jobs Report Is Out. Here's What It Means for the FedThe September jobs report came in much higher than expected, lowering expectations for a December rate cut.
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S&P 500 Snaps Losing Streak Ahead of Nvidia Earnings: Stock Market TodayThe Dow Jones Industrial Average also closed higher for the first time in five days, while the Nasdaq Composite notched a win too.
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Dow Trims Its Loss to 498 Points: Stock Market TodayMarkets are wondering more and more about returns on the enormous amounts of capital hyperscalers are investing in AI.
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Dow Falls 557 Points to Start NVDA Week: Stock Market TodayThe Oracle of Omaha saw growth and value in certain corners of the stock market during the third quarter.
