The market got a huge pop at the open as the Dow tripped 13,000 on better-than-expected earnings from a couple of blue-chippers and the rally has strengthed as we head into the second half of trading.
As far as economic news, Housing Starts were a little disappointing as they fell 5.8% versus expectations for a 1% rise but Building Permits rose 4.5% to 747,000. Wall Street had forecast a drop to 710,000, or 0.7%.
Goldman Sachs (GS, $118.34, up $1.00) is trading higher after beating expectations and pumping up the dividend. The company reported a profit of $2.1 billion, or $3.92 a share. The suit-and-ties were looking for $3.55 a share.
Golden Slacks has gotten a bloody nose from all the recent negative publicity but the firm continues to battle. A rising tide often lifts all boats and in this case the Financial stocks are following Goldman’s lead. Also enjoying sweet pops are JPMorgan (JPM, $43.85, up $0.52), Citigroup (C, $35.28, up $1.28) and Bank of America (BAC, $9.87, up $0.18).
Speaking of BAC, we are on track to close out 3 more winners for our Weekly Wrap and our current covered call on BAC is set to return us 26%. We started taking positions in Bank of America when shares were at 5 bucks back in December and our first BAC returned 20% earlier this year. If you haven’t discovered the magic of writing covered calls on solid stocks with the potential of making monthly double-digit gains than we urge you to get interested. Remember, it only takes 5 winning trades of 20% to make a 100% or double your money.
We have a lot to cover inside our Members Area as we have a freshly minted Watch List that is loaded with some potential gems for our next batch of trades. We also have action to take on one of our trades which will make our 70th winning trade for 2012. Wow.
As we head to press, the Dow is up 200 points to 13,121 while the S&P 500 is higher by 21 points to 1,390. The Nasdaq is up double-nickels to 3,043. Subscribers, you know what to do but stay lock-and-loaded on a possible NEW TRADES if we see something we like before the close as we have updated our Watch List.