The bulls continued their journey to fresh highs despite Tech lagging as the market awaited several high profile earnings reports last night and this morning. The talking heads and suit-and-ties will continue to be in denial until there is a pullback but we mentioned last week the bulls haven’t traveled this far for nothing and were determined to plant the flag on the hill before they rest.
The Dow gained 72 points, or 0.5%, to finish at 13,954. The blue-chips held a solid uptrend all session long while pushing 52-week highs and are within a stone’s throw of 14K. The all-time high for the Dow is 14,198. Support at 13,800 has held all week but still needs to be watched.
The S&P 500 added over 7 points, or 0.5%, to settle at 1,507. The index also hit a fresh 52-week peak and traded up to 1,509. We have said there is room to run up to 1,525 before January closes which is just over 1% away with 2 days left. The all-time high of 1,576 is 3% away and could be all that’s left standing if 1,525 is cleared. The base above 1,500 continues to build but the bears are only a negative headline away from getting back below this level and pushing 1,475.
The Nasdaq slipped a point, or 0.02%, to end at 3,153. Tech was in the red for much of the day and nearly closed in positive territory by the final bell before running out of gas. The low came in at 3,133 but 3,125 held and the index closed above 3,150. These were bullish signs with Amazon.com (AMZN, $260.35, down $15.69) on deck after the close.
The company is a Wall Street darling and always seems to get a kitchen pass based on what they are predicted to do in the future. We mentioned yesterday shares carry a rich premium and that they needed to knock the cover off the ball. That didn’t happen as Amazon missed estimates by 6 cents. However, profit margins improved and shares were up $23 to $283.50 in after-hours trading last night.
We were in the camp shares would move higher but we didn’t pencil in a six-pack miss on the top-line.
As we head to press, futures look like this: Dow (=7); S&P 500 (-3); Nasdaq 100 (-2).
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