Got to feel for Mr. Buffet this morning, just as he was sitting down to his cornflakes he finds out he is down $1 billion dollars!
His massive stake in IBM took a major haircut after earnings were released, but I am sure he is not panicking, just maybe having a liquid lunch!
Another strong move up as we now wait on results from the tech giant Apple, should the earnings be as positive as expected we may see another move higher tomorrow. It certainly looks like we have indeed put in a bottom at 1820, but just where the next top is now that we are back above 1900 on the S&P is difficult to say.
Europe should re-bound tomorrow after taking quite the hit today, they will no doubt follow the lead from the US markets today, which I suspect will help the North American markets tomorrow. Let the trend continue as fear of missing the rally takes the place of fear of losses.
U.S. stocks climbed on Monday, with the S&P 500 marking its longest winning run in a month, as expectations for Apple’s quarterly results outdid disappointment that came with a reduced outlook from International Business Machines.
In addition to Apple’s results, economic data on China’s GDP after Monday’s close could impact trade on Tuesday.
IBM shares slid 7.4 percent after the technology giant and Dow component posted third-quarter earnings short of estimates. Apple gained 1.9 percent ahead of reporting results after the close.
Of 87 companies in the S&P 500 that have reported third-quarter results, 63.2 percent have beaten earnings expectations, 10.3 percent have reported in-line earnings and 26.4 percent have missed, according to Thomson Reuters.
Earnings: Coca-Cola, McDonald’s, Travelers, Verizon, Discover Financial, Lockheed Martin, VMWare, Harley-Davidson, Intuitive Surgical, Illinois Tool Works, Kimberly-Clark, Six Flags, iRobot, Cree, Omnicom
10:00 a.m.: Existing home sales
News Sources: CNN Money & CNBC