by Ian Harvey
July 20, 2017
Wednesday saw the S&P 500 INDEX (SPX) mark the 4th straight close above 2450, which verifies that the breakout is truly underway. Both the SPX and Nasdaq Composite (COMP) hit new record highs yesterday, as the financial sector rallied around Morgan Stanley's earnings and Apple stock (see trade) heads toward its longest winning streak in almost three years.
Although risk is escalating, the CBOE Volatility Index (VIX) -- or the stock market's "fear gauge" -- closed below 10 for the fifth straight session, a new record.
Stocks have yet to suffer any major pullback/correction since Election Day, based on hopes President Trump and the Republicans in Congress would reinvigorate the economy via tax cuts, healthcare reforms, deregulation and infrastructure spending.
Other stand-out results so far…..
Johnson & Johnson (NYSE:JNJ) gained 1.4% after a second-quarter earnings beat.
Goldman Sachs Group Inc. (NYSE:GS) fell 2.6% despite a big earnings beat as investors focused on disappointing results from its fixed income, currencies, and commodities trading.
And the situation, where the stock market keeps-on keeping-on, is likely to continue as there has been a solid start to the earnings season; backed-up by the flow of positive earnings estimate revisions across all stocks. Add this to the fact that the economic data is definitely in the green in most areas, and then a bull-rally is certainly staying on-track.