Advertisement
Advertisement

S&P 500; US Indexes Fundamental Forecast – April 25, 2017

By:
James Hyerczyk
Updated: Apr 25, 2017, 15:06 UTC

U.S. stock market investors shrugged off concerns over North Korea and shifted their focus on earnings on Tuesday. Helped by solid quarterly earnings

Stocks SP 500

U.S. stock market investors shrugged off concerns over North Korea and shifted their focus on earnings on Tuesday. Helped by solid quarterly earnings reports from several large-cap companies, the major indexes soared.

The blue chip Dow Jones Industrial Average rose more than 200 points, led by Caterpillar stock. Financials and materials stocks helped boost the benchmark S&P 500 Index surge more than 0.5 percent. The highlight of the day so far has been the NASDAQ Composite. It jumped 0.5 percent, pushing the index over 6,000 for the first time in history.

Dow Jones Industrial Average
Daily June E-mini Dow Jones Industrial Average

After an early setback fueled by concerns that the situation in North Korea would escalate into military action, investors calmed down as several companies posted quarterly results before the bell.

The foundation for a rally during the regular trading was set after Caterpillar, McDonald’s, 3M and DuPont, all posted better-than-expected numbers. All four beat earnings and revenue estimates.

Later this week, quarterly results will be posted by Boeing, Amazon, Alphabet, Microsoft and General Motors.

S&P 500 Index
Daily June E-mini S&P 500 Index

During the early part of the week, the focus for investors will be on earnings and tax reform. After Wednesday, we could see profit-taking as investors shift their focus to the possibility of a government shutdown.

Government funding will end Friday unless Congress can agree on at least a temporary funding resolution. The news is not likely to put an end to the rally, but it could slow down the buying or give investors an excuse to book profits.

Any solid develops over North Korea could also turn into a negative for traders especially if the U.S. responds militarily.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement