Despite the heavy round of earnings releases across the corporate landscape today, we are witnessing a fairly quiet broader market trading session with the nation and trading community clearly distracted by the events unfolding in Boston.
As of 11AM ET, we are trading 0.6% higher on the S&P 500 with the Dow down by 0.2%. However, we are seeing the Nasdaq outperforming with gains of around 1% in reaction to encouraging earnings from tech bellwethers Microsoft & Google.
Main Factors Driving Morning Trade:
– Positive Earnings Results – Honeywell, Google & Microsoft are the clear standouts today with all posting solid quarterly results and seeing strong price outperformance in today’s session.
– Weak Earnings Results – McDonald’s, IBM & General Electric are all seeing significant weakness in today’s period in reaction to their latest quarterly numbers and are acting as the main overhangs on the Dow Jones Industrial Avg.
– S&P 500 Technical Update – The S&P 500 continues to trade clearly below a significant upward trend line that it had been using as support since November of 2012. As a result, the charts are beginning to turn more bearish with traders looking to sell rallies. However, the Index’s 50-day moving average is acting as a notable source of support for the market at current levels, as we have seen a nice bounce of this technical mark that is sitting just above the 1,540 level. The S&P 500 is currently trading at 1,549. Going forward, traders will be closely watching price action around this 1,540 support level to predict future market direction.
– Commodity Markets Find Support – Commodity markets appear to have stabilized a bit today from the heavy downside action we witnessed across the arena earlier in the week. As of 11AM ET, we are seeing Gold firm up with gains of 0.8% on the trading period pushing the metal above 1,400 an ounce. Meanwhile, NYMEX WTI Crude Oil is up 0.4% with gains of 0.7% in the Brent Crude market.