The stock market continues to climb in what is shaping up to be a quiet Monday session. The bond market is closed for Columbus Day and trading volumes are light for the stock market. The bulls don't seem to care. The S&P 500 is testing its 2009 highs near 1,080. The Dow Jones Industrial Average is hitting new 52-week highs above the 9,900 level. Traders are eyeing the 10,000 mark again. Friday's pop in the dollar appears to be a one-day move with the currency sliding lower again. The weak dollar continues to fuel a rise in commodities.
A quick look at the foreign markets shows the Chinese markets are down. The Shanghai index was up big on Friday so it's no surprise to see it suffering some profit taking with a 0.59% decline. The Hong Kong Hang Seng was up five days in a row and it's seeing some profit taking with a 0.9% pull back. The Japanese NIKKEI index is closed for holiday. In Europe the tone was positive with mining stocks leading the market higher. A better than expected earnings report from Philips (PHG) helped keep the mood positive. The English FTSE index gained 1.0%. The French CAC-40 rose 1.2%. The German DAX rallied 1.25%.
Commodities remain front and center with the dollar rolling over again. Gold futures rallied more than $9 toward $1,058 an ounce. Crude oil surged more than 2% to push past $73 a barrel. Copper wasn't participating as much with a minor +0.1% gain. While mining stocks led the way in Europe they are barely keeping up with the S&P 500 here in the states. It's the oil and oil service stocks that are capturing traders' attention today. The OIX index is up 1.2% and the OSX index is up 1.5%.
The big event this week is earnings. Investors are hoping that earnings come in better than expected. However, this time the market wants to see sales improvement and not just cost-cutting. That's why Black and Decker's (BDK) comments this morning were so positive. BDK raised their earnings guidance significantly thanks to better than expected sales numbers. Analysts were expecting BDK to report earnings of 43 cents a share. The company raised their own guidance to 91 cents a share. The stock is up 7.3% and trading just north of $50.
Tomorrow we'll get earnings reports from Intel Corp. (INTC) and Johnson & Johnson (JNJ). JP Morgan Chase (JPM) reports on Wednesday morning. Goldman Sachs (GS) reports on Thursday morning. Bank of America (BAC) reports on Friday morning. We'll also hear from IBM and Google (GOOG) on Thursday night.
Let's take a quick look at charts for the major averages:
Chart of the S&P 500:
Chart of the NASDAQ:
Chart of the Dow Industrials:
Chart of the Russell 2000 index:
Scanning the OptionInvestor.com play list for movers I see that ACL continues to rally and is nearing its 2009 highs. AMZN is under performing and appears to be creating a bearish engulfing candlestick (reversal) pattern. CNQ continues to soar. The stock is up 3.6% at $72.50. CNX is also hitting new highs with a 1.9% gain today. Oil service stock DO is hitting new highs above $100. ESRX is breaking out past resistance at $80 with a 1.9% gain. FLS is breaking out and has hit our trigger to buy calls at $102.60. MBT is breaking out over resistance and hit our trigger to buy calls at $50.15. PCP also traded over resistance and hit our trigger to buy calls but shares are starting to retreat.