(As of 7:20 am PST)
US stocks are surging this morning after yesterday’s
disappointing close. US indexes erased
all of yesterdays losses in the early going as the Dow surged well over 200
points, while the Nasdaq and S&P500 were also up over 1%. Strong earnings results from the industrial
sector got things going early. Better
than expected earnings from Caterpillar, 3M Co., and General Motors ignited the
buying as investors applauded the quarterly results and outlook from the three
Dow components. Other positive results from Southwest Airlines and athletic
retailer Under Armour added to the momentum.
Economic data is light today but mostly positive. Jobless claims jumped
17,000 last week to 283,000, but the move was less than what analysts expected
and remained below 300,000 for the sixth straight week. An upbeat report out of
Europe showed the initial reading of the Euro-zone Markit PMI for October
reached a 2 month high, beating analyst expectations. European stocks are on pace
for a higher close. Asian stocks finished mostly lower overnight. Gold is down
1% today while oil is up 1% to just over $81.50 per barrel. Interest rates are
higher and treasury prices dropped as investors bought up stocks. The 10 yr.
treasury yield is back up to 2.27% after dipping below 2% just a couple weeks ago.
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