Stocks made their first real progress in passing the blockade of resistance they had been dealing with the entire month. As continued speculation and optimism about a resolution to the fiscal cliff has hit the airwaves, stocks have reacted this week with back to back significant gains. Today’s 1.15% move in the S&P 500 and 1.46% gain in the NASDAQ finally pushed these major indexes over their early November highs on a closing basis. Note the S&P 500 briefly visited over that level last Wednesday after the Fed announcement but quickly was rejected.
In the coming days, if these indexes can digest these gains without faltering back below, it will be a positive step for markets.
The NYSE Oscillator has quickly gone from neutral to somewhat overbought in the span of two sessions.
Other significant groups also show positive action such as the transports – which cleared summer highs…
… and the materials.
Financials are a very hot sector of late, and look very constructive but in the short term are very overbought.
After the close, tech bellweather Oracle (ORCL) reported a quarter that beat on the top and bottom line, pushing the stock up nearly another 2% in the after hours session to the mid $33s (chart below only reflects the normal market session).
Net income rose 18 percent to $2.58 billion from $2.19 billion a year ago. Excluding items, earnings increased to $3.12 billion, or 64 cents per share, from $2.78 billion, or 54 cents a share in the year-earlier period. Revenue increased 3.2 percent to $9.09 billion from $8.81 billion a year ago. Analysts had expected the company to report earnings excluding items of 61 cents a share on $9.02 billion in revenue.