Futures were positive throughout the night as we stayed up late to watch the European markets open and got progressively better as we headed into this morning’s open here at home. After clearing the 50-day MA’s (moving averages) on Friday, it was important for the bulls to continue their momentum heading into this week or at least hold support.
There are a number of subjects we could cover today but the most important one will be the start of 2Q earnings season. While expectations are low, the numbers will be important but what companies say about 3Q and year-end earnings will be the devil in the details. Economic news has been impressive in recent weeks and with ObamaCare being delayed until 2015, companies can hire to meet the demand without having to worry about heath care costs.
Alcoa (AA, $7.88, up $0.07) will kick off the season after the close today and while it is a Dow component, shares won’t have a major impact on the index. The stock is trading near 52-week lows and there is a chance shares reclaim $8 on an earnings surprise. Wall Street is expecting a lot from the company, a profit of 6 cents a share on revenue of $5.83 billion, but if there is a disappointment, shares could fall below $7.50.
As we head into the second half of trading, the Dow is up 82 points to 15,217 while the S&P 500 is higher by 8 points to 1,640. The Nasdaq is down 3 points to 3,476.
We have 2 New Trades for our Daily and we have 1, possibly 2 New Trades for our Weekly Wrap today. The Weekly Wrap trades will be sent within the next hour and the New Trades for the Daily are ready to roll.
Subscribers, check the Members Area for the updates and be ready for the Weekly Wrap trades, shortly.