The rally in the U.S. stock market seemed to stall on Thursday. The flood of earnings news remains largely bullish but geopolitical tensions are rising and could stymie the rally.
The situation with Israel's ground offensive in Gaza is escalating. Not only is it drawing major demonstrations around the world but the warfare has turned to rioting in Gaza. Reports suggest that tens of thousands of Palestinians have clashed with Israeli forces with the Gaza residents throwing rocks, Molotov cocktails, and fireworks.
At the same time the situation with Ukraine and Russia is getting worse. The U.S. military says they have evidence that Russians have been sending more tanks into Ukraine and the Russian military has been firing their artillery at Ukraine targets. If that wasn't enough Bloomberg reported that the Ukraine (Kiev) government is in trouble with two parties, the UDAR and Svobada, both quitting the government, which dissolves the current coalition. This could force new elections by September or October.
In other news yet another passenger plane went down in Africa with over 115 people on board.
Put it altogether and the U.S. market has been extremely resilient to all these headlines. Yet as they continue to pile up it could start to impact investor sentiment.
Today was also a huge day for quarterly earnings announcements with hundreds of companies reporting results today.
There is a chance tomorrow could see a post-earnings let down.
No new trades tonight.
I will note some of the bullish stocks on my watch list:
JBHT, INTU, GD, NOC, LMT, TMO, CVS, BHI, INGR, UNH
We might add some of these in the weekend newsletter.