The bulls can thank Germany and Portugal for today’s rally after the countries had successful auctions of government bonds this morning. Futures were up when we hit the rack last night and held after buyers came in to support the offerings which lifted sentiment on Wall Street this morning.
Germany offered 5-year notes while Portugal went with both 3-year and 10-year notes which were well received and reassured European markets that there is still demand for the region’s debt.
As a result, Germany’s version of the Dow, the DAX, was up nearly 1.4% for the day. This enthusiasm carried over into the U.S. markets as the major indexes are showing strong gains at halftime.
The Dow is up 109 points to 11,780 while the S&P 500 is higher by 12 points to 1,286. The Nasdaq is higher by 18 points to 2,734.
As far as the earnings picture, Chevron (CVX, $92.73, up $0.90) is at 52-week highs after the company said it would beat results when they report at the end of the month while Lululemon Athletica (LULU, $73.00, up $5.76) raised its 4Q profit outlook.
On Thursday, Intel (INTC, $21.28, up $0.23) reports after the close and JPMorgan Chase (JPM, $44.69, up $1.09) before the bell on Friday. We aren’t sure which way Intel trades after they announce but JPMorgan could push its 52-week high of $48.20 if the “shatter” expectations. A slight beat by a penny or two won’t do it but JPMorgan appears to be the strongest of the banks and could prove this on Friday.
We have more good news in our Members Area as we have 3 more current trades approaching triple-digit returns so we don’t need to push an “earnings trade” but we are eyeballing JPMorgan.
We will be back Thursday morning with our next update.