New Month, New Mood. Stocks closed higher on the first day of the month, helped by trade optimism on a lackluster earnings day. It’ll take more than a three-day rally to undo the pain of October, but at least we’re off to a good start. Apple was falling in after-hours after offering weak guidance. In today’s After the Bell, we…
…see what lifted the market today; …hope the rally can keep running; and …note Newfield Exploration’s big pop. Bull Run
Stocks rallied to start the month, as hope about trade overshadowed an underwhelming earnings slate as we finally turn the page a rough October.
A presidential tweet boosted market sentiment this morning, as Donald Trump said that he has had productive talks with China’s President Xi Jinping. There weren’t any high profile megacaps reporting earnings this morning, but a new month and optimism about Friday’s employment report were enough to keep the three-day rally going.
“October was a rough ride, and most investors are likely quite happy to wave it goodbye,” says LPL Financial’s Ryan Detrick. “The good news remains that valuations are the lowest they’ve been in years, earnings continue to surprise to the upside, and November and December during a midterm year are historically quite strong.”
Of course, strong results haven’t meant much lately, given that they were largely anticipated and investors are more concerned about management outlooks as global risks mount. Yet as Credit Suisse’s Jonathan Golub writes that the idea that disappointing guidance is behind the decline is “refuted” by data, showing