Stocks higher on sentiment, earnings
Stocks are continuing their rebound today, fueled by improved global sentiment and corporate earnings.
S&P 500 futures are up 0.6 percent, while the Nasdaq advanced 0.9 percent after strong iPhone sales caused Apple to beat expectations. European markets advanced by 1.5 to 2.3 percent, led by Italy, on hopes that the region's central bank will buy corporate bonds to stimulate growth. Commodities are inching higher as well, though Asia mostly fell overnight.
Equities are poised for their fourth straight winning session, the longest positive streak in two months. They've been fighting back from a big selloff in the first half of October as worries about Europe and bearish momentum in oil prices forced some large investors to broadly liquidate positions. Attention is now returning to corporate results, which tend to be positive for sentiment.
In addition to AAPL's numbers, Texas Instruments rose 2 percent after reporting better-than-expected earnings and revenue. It also provided strong guidance, helping to dispel worries in the semiconductor space after Microchip Technology's big warning on Oct. 9. Illumina also surged 10 percent after beating consensus estimates. Harley Davidson rallied 7 percent on its results as well and Travelers rose 1 percent.
Other companies on this morning's lineup today include Coca-Cola, down 3 percent on a profit warning, United Technologies, Regions Financial, Verizon, and McDonald's. Yahoo, Broadcom, Discover Financial, and Intuitive Surgical follow in the afternoon. The only economic report is existing home sales at 10 a.m. ET.
The housing market could also provide bullish catalysts because mortgage giants Fannie Mae and Freddie Mac are expected to announce a settlement with regulators that could encourage lending. Several companies that would benefit from such news have seen bullish option activity in recent sessions.
In addition to the emerging strength in homebuilders, optionMONSTER's proprietary researchLAB market scanner also shows investors returning to industry groups that had fallen most sharply in preceding weeks. That's especially true for energy stocks, airline carriers, and coal miners. Casinos and gold miners have also been showing signs of life following months of underperformance.
Copper is the strongest major commodity today with a gain of 0.8 percent. Gold, silver, and oil are up less than half a percent. Foreign-exchange markets are mixed, with the safe-haven Japanese yen modestly higher but currencies associated with growth such as the Canadian and Australian dollars appreciating against the greenback.
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