Stocks & Earnings Mixed To Mostly Higher

The market ended mixed last week as investors digested a slew of earnings. So far, the vast majority of companies that reported earnings beat estimates which is a net positive for both Main Street and Wall Street. The market is acting very well as the major indices refuse to fall in a meaningful fashion. Stepping back, in the short-term, the market is clearly extended and due to pullback. Near-term support is the 50 DMA line and then the 200 DMA line. It would be encouraging to see a nice quiet light volume pullback before the next leg higher. Again, until we see any meaningful selling, the bulls remain in clear control of the market. 

Monday-Wednesday’s Action:

On Monday, stocks ended mixed as investors waited for another busy week of earnings. Boeing (BA) contributed the most to the Dow’s losses, falling 1.3% after The New York Times reported that workers at the company’s 787 jet plant have complained about shoddy production and bad safety practices. On Tuesday, stocks rallied nicely after the latest round of earnings was announced. Shares of Coca-Cola (KO) and Twitter (TWTR) both rallied after reporting earnings. Stocks were quiet on Wednesday as investors waited for a slew of well-known companies to report earnings after the bell. Facebook (FB), Microsoft (MSFT) and Tesla ( TSLA) were some of the well-known stocks that reported earnings.

Thursday & Friday Action:

The Dow fell on Thursday after 3M (MMM) plunged on earnings. Other earnings were mixed as Tesla (TSLA) fell and Microsoft (MSFT) and Facebook (FB) rallied helping the S&P 500 and Nasdaq end flat to higher. So far, over 170 companies in the S&P 500 have reported earnings and 78% have posted stronger-than-expected results, according to FactSet. Before Friday’s open, the government said GDP grew by 3.2% in Q1 2019 which beat estimates for 2.5%. 

Market Outlook: Bullish Tailwind Continues

The market remains very strong after the Federal Reserve reversed its stance and moved back into the easy money camp. Near-term resistance is 2018’s high while near-term support is March 2019’s low, then the 200 and 50 DMA lines, and then 2018’s low. As always, keep your losses small and never argue with the tape.