Traders woke up today with a more optimistic mood, temporarily shedding the pressures brought about by the unrest in France and rising oil prices. Asian markets saw mixed movements, but European stock indices were higher in the early session. Before the opening of trading in New York, U.S. stock index futures were on the rise.
Nasdaq futures rose by 0.43% after SpaceX announced third-quarter results that significantly exceeded analyst expectations. Two companies owned by Elon Musk both saw gains in overnight trading. SpaceX rose by 8.86% after the market closed, while Tesla rose by 1.42%.
S&P 500 futures rose 0.24% this morning. The index gained 0.28% yesterday.
In Europe, Stoxx rose by 0.54% in the early session, while the UK FTSE 100 index gained a slight 0.03% before noon.
In Asia, the South Korean KOSPI index rose by 3.29%, Japan's Nikkei 225 index increased by 0.85%, India's Nifty 50 index fell by 0.66%, and China's CSI 300 index declined by 0.97%.
Brent crude oil is priced at $110 per barrel.
Bitcoin is reported at $83,346.
Wells Fargo’s “buy” signal indicates that retail traders are going against the short positions
Recent selling in the stock market has pushed Wells Fargo's “Sentiment Indicator” into the “buy” zone, which indicates that this indicator believes that other investors are too pessimistic about the market. Therefore, you should take the opposite action. According to the research of Ohsung Kwon and his colleagues, the S&P 500 has risen 89% of the time after this signal appears, with an average increase of 6.5% over the next three months. They also noted that retail traders are returning to the market:
Where will the profit growth come from?
The chart labeled Glenmede shows that earnings for the third quarter of the S&P 500 are expected to total $180 billion, of which $116 billion will come from the "Big Seven" tech companies, with the remainder coming from other companies in the tech industry. (This chart is somewhat confusing as it indicates that the index reported earnings of $618 billion in the previous quarter, and when $180 billion of expected earnings for the third quarter are added to that figure, the total comes to $798 billion.)
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