Netflix posted its hotly anticipated third-quarter earnings report on Tuesday after the market closed, with the streaming giant adding 4.4 million subscribers during the period. However, the improvement in market technicals, such as clearing the 50-day moving average, is actually suggesting that underlying trends are getting stronger."
We already know that investors got very pessimistic in September. "We do not think consensus is that bullish. "We believe a strong risk-on environment is underway," Lee said in a note to investors late Tuesday. He upped his S&P 500 price target 100 points to 4,800, citing declining Covid cases and economic resilience. The bitcoin rally is a signal of a strong risk-on environment, according to Fundstrat's Tom Lee, who also said the stock market could still rally more than 6% by the end of the year despite the "jagged year of progress" it's had. The ProShares Bitcoin Strategy ETF began trading Tuesday. Bitcoin has been climbing for four weeks amid positive regulatory developments and anticipation of the first bitcoin-linked ETF. "We believe that the stock market has more to climb in this bull market and that some of the Covid headwinds are receding even as inflation increasingly becomes a headwind, because many companies continue to have pricing power, which should preserve corporate profits," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.īitcoin soared over $66,000, notching a fresh high for the cryptocurrency, following comments Paul Tudor Jones made on CNBC's "Squawk Box" calling bitcoin his preferred inflation hedge over gold. IBM, Tesla, CSX and Las Vegas Sands are among the names set to report after the market closes. Third-quarter earnings are on pace for a 35% increase from a year ago, according to Earnings Scout. More than 70 S&P 500 components report earnings this week and so far reports are going very well. Biogen shares edged lower even after it beat estimates on earnings and revenue and raised its full-year guidance. The telecom giant raised its forecast because of growing 5G adoption. Verizon was one of the biggest gainers in the Dow, jumping 2.4% after earnings topped estimates for the third quarter.
Favorable seasonal factors should also help power the market to additional new highs," Stovall said about the S&P 500. "History shows that stock market advances following the recovery from pullbacks recorded an average price gain of 8.4% over the following 98 calendar days before slipping into a new decline of 5% or more.