By Markus Heitkoetter
￼Today was all about the NASDAQ. The index led the way, gapping higher and rallying throughout the day. The NASDAQ ultimately closed at session highs with a 1.24% gain. Today’s close of 5163.18 is a new record close for the NASDAQ.
Its been a pretty impressive turnaround over the last few sessions!
After trading at multi-month lows, stocks have made a strong push higher with stocks trading higher 5 out of the last 6 trading sessions.
So what’s driving these markets?
Optimism over Greece – It looks like the wheels are in motion to put the Greek debt drama behind us (at least for now). Last night Greek lawmakers passed reform measures in exchange for its third bailout package. It is expected that Eurozone leaders will authorize a 7 billion euro loan to keep Greece running while creditors work on the details of the bailout. The loan also gives Greece the ability to make its upcoming 3.5 billion euro payment to the ECB.
Good start to earnings season – Earnings have been very promising. Today Netflix (NFLX) jumped 18% with a surge in new subscribers, Citigroup (C) was up 3.4% after profits beat estimates, and Google (GOOGL) ended 3.05% higher with better than expected earnings.
Fed Chair Janet Yellen’s testified before the Senate Banking Committee today. In her testimony there were no real surprises. Yellen reiterated her expectation that the Fed can raise rates this year. She also said the job market is returning to a “more normal state.” The comment was well timed after weekly Unemployment Claims fell for the first time in 4 weeks.
The S&P had a 17 point gain today. With today’s .80% increase the S&P finished the day at 2124.29
The DOW finished 70 points higher with a .39% gain. After struggling with the 18,000 mark for weeks, the DOW has closed above 18,000 in each of the last 3 trading sessions.
Tomorrow is options expiration and it is going to be a busy day in early trading. Traders have the following reports to digest: Building Permits, CPI, and Housing Starts at 8:30am ET, follewed by Preliminary Consumer Sentiment at 10:00am ET.
Ebay Inc (EBAY) has mirrored the market perfectly, trading higher in 5 out of the last 6 trading sessions. But today’s jump outpaced the major indices with EBAY ending the day 3.39% higher.
A PowerX Method Buy Signal was identified on July 9th. Today’s rally was just what PoweX traders needed for the stock to reach its ADR Profit Target at $66.02.