By Markus Heitkoetter
￼Today the 5-day losing streak came to an end.
Stocks opened the U.S. session slightly higher and dropped a little. After sideways activity in the morning, a late morning move kicked off a rally that would last into the afternoon.
Today’s reversal was fueled by better than expected earnings from companies like United Parcel Service (UPS) up 5.1%, Ford (F) up 1.9%, Merck (MRK) up 0.9%, and Pfizer (PFE) up 2.9%.
By day’s end the major indices were sitting on 1%+ gains, wrapping up the day near session highs.
The S&P 500 finished the day with a 25.5 point gain. With a 1.24% rally the S&P ended at 2093.25.
The DOW erased yesterday’s loss (and then some) with a 1.09% gain. The DOW ended the day with a 190 point gain, closing the session at 17630.27.
And now all eyes are on the Fed…
Traders will be completely focused on tomorrow’s FOMC Statement and Interest Rate decision at 2pm ET. Fed Chair Janet Yellen and most of the Federal Reserve members have been pretty consistent with their message that interest rates will be raised this year. The question right now is WHEN.
With Consumer Confidence coming in lower than expected (the biggest drop since August of 2011), most traders believe that the Fed won’t make any big decisions with this meeting, and will most likely focus on a rate hike in September. So what traders are really looking for is an answer to when the Fed will raise rates. But even if traders hear what is expected, you never know how the market will react.
Keep in mind that it’s common for “Fed Days” to be indecisive and choppy during the morning. Make sure to use caution when trading, ESPECIALLY around the statement release tomorrow at 2pm ET.
Sirius XM Radio (SIRI) was one of the top volume movers today (45.94 million vs an average of 27.72 million) after reacting to earnings. The stock jumped 3.13% after raising their subscriber expectations for the year.
A PowerX Method Buy Signal on July 15th. Traders are looking for a PowerX target at $4.11