9:00am (EST)
The bulls were determined to close Tuesday with a win and after it was all said and done they did exactly that.
The market started off in negative territory and was making a push towards breakeven before a rumor hit that Big Ben was going change the “extended period” language in the Fed’s fiscal policy next time out.
The bears had every opportunity to step in and take control but they were met by bulls that were ready to buy off the lows.
As a result, the Dow managed to post a 14 point gain, or 0.1%, and settled at 11,019 while maintaining a hold on the psychologically significant 11,000 level. The index traded to a low of 10,947 before touching another fresh 52-week high of 11,038.
The S&P 500 added a point and closed at 1,197 after trading to a high of 1,199. The index looks poised to break 1,200 today; more on that in a minute. The Nasdaq managed to post the strongest gains by adding 0.3%, or 8 points, to finish at 2,465.
We haven’t really concerned ourselves with the economic news so far this week because earnings are going to set the market’s tone for the rest of April. Yesterday though, the Commerce Department said the U.S. trade deficit expanded over 7% to $40 billion in February, exceeding expectations. The gap was widened, in part, by a 3.1% increase in imports of consumer goods during the month, suggesting consumer demand and spending are on the up-and-up.
Of course, the big news this morning is Intel’s (INTC, $22.77, up $0.23) numbers. The company said after the market closed Tuesday that it earned $2.4 billion, or $0.43 a share, versus $629 million, or $0.11 a share, in the year-ago period. Wall Street was expecting profit of $0.38 a share.
Intel’s revenue came in at $10.3 billion, ahead of analysts’ forecast for $9.8 billion, with gross margins topping 60+%. It was an incredible quarter and Intel said all the right things. In pre-market trading, shares are at $123.82, up $1.05.
The Intel news, and a great JPMorgan (JPM, $45.87, down $0.27) earnings report, have futures soaring before the bell which should lead to a strong open.
Dow futures are up 41 points to 11,005 while the S&P 500 futures are showing a 6 point pop and are at 1,199. The Nasdaq 100 futures are higher by 14 points to 2,015.
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