(Monday Market Open) After a week that went all over the place and ended up going nowhere, Monday starts with a muted tone as a host of earnings reports awaits. It’s one of the busiest earnings weeks of the season, and info tech might hog the spotlight.
Last week’s market action, and Friday’s in particular, gave both bulls and bears some fodder. The S&P 500 (SPX) had some dramatic ups and downs, but finished the week almost exactly where it started at 2767, which just happens to be one point below its 200-day moving average and even with its year-to-date average. This level could hold some technical significance moving forward, perhaps forming a key support point.
Volatility, meanwhile, remains elevated. The VIX began the week near 19, up from September lows below 12 and perhaps signaling more possible turbulence ahead.
Stocks moved slightly higher in pre-market trading Monday, apparently getting a boost from the second-straight day of big gains in China after the government there took measures to support the market and started talking over the weekend about a possible tax cut, according to media reports. The Shanghai Composite rose 4% Monday. S
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This turbulent week marches toward a close with the pendulum swinging back into green again, at least for now. Continued volatility wouldn’t be surprising, especially with a heavy set of info tech earnings on the way next week.
The market got knocked back down in a big way Thursday, upending most of the week’s early gains. Growing concerns about earnings and geopolitics seem to be raising investor worry.
As Wall Street continues to mull the latest minutes from the Federal Reserve, it seems that worries are continuing about higher interest rates potentially clipping the wings of a high-flying stock market.
After Tuesday’s big rally and strong results from Netflix, it looks like the market might pull back under some profit-taking pressure early Wednesday. Volatility remains a possible factor.
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