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Market Cheers GDP Report: SPX, Nasdaq, FCX, RTP, BTU, ABX, PRU, PNC, HIG, WFC, CLF, PCLN, LVS, WYNN

This morning, the GDP report was better than expect, coming in at +3.5% (vs. the consensus of +3.2%) for the quarter from July through September.  The market was encouraged by the news and rallied back up, after the recent 4-day selloff.  The Dow was particularly strong, charging up almost +200 points!!  Commodity sectors had sold off hard earlier this week.  Today, they led the market higher:  FCX +6.43% (added to S&P 100), RTP +6.45%, BTU +5.15%, ABX +7.09% (good earnings report).  Financials also bounced:  PRU +7.97%, PNC +5.42%, HIG +10.31%, WRC +4.04%.

After the market, PCLN was named as the replacement for Schering-Plough in the S&P 500, sending its shares up +4.54% in after-hours trading.  CLF reported better-than-expected earnings and traded +4.53% higher.  In our Trading Room, I mentioned that the estimates were too low on CLF:

October 29, 2009 9:14 AM
CLF
up +7.7%; earnings later today; I think the estimates are low on this one…

LVS also beat the estimates with its earnings and provided bullish outlook.  LVS shares went up +8.4% after the news.  Both WYNN and MGM also traded higher.  MGM will report earnings on Nov. 5, next Thursday, before the market opens.

The Dow ended up +199.89 points; SPX jumped +23.48 points; Nasdaq gained +37.94 points:

Commodity sectors closed solidly higher:  XME (metals and mining) +5.01%, GDX (gold miners) +4.61%, XLE (energy) +2.66%, OIH (oil services) +3.35%.  USO (oil), UNG (natura gas), GLD (gold), SLV (silver) were all higher.  XLF (financials) added +4.18% while HGX (housing) advanced +2.56%.  FXI (Chinese ADRs) rose +2.47%.

SPX

SPX added +23.48 points to close at 1066.11.  It closed right at its 30-day MA.  The MACD was lower.

Nasdaq

Nasdaq gained +37.94 points to close at 2094.55.  It closed just below the 2100 level.  Its MACD slid.

The market had a nice bounced today, cheering the GDP report showing economic growth for the first time in a year!  Commodity sectors took SPX right back above that 1050 level, while Nasdaq closed just below 2100.  Investors went for the biggest names in the markets, driving the Dow up almost to even for the week and less than 40 points from that 10,000 psychological level.  VIX came down more than 11% to close below 25.  While the initial bounce was strong, since the recent fall was so sharp, we’ll need to see continuing strength to challenge to recent highs in order to turn the daily MAs (moving averages, see charts above) back up again.

Good night and HappyTrading! ™


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