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Markets rebounded nicely today across all major indices after Tuesday’s moderate selloff. Though off session highs a bit, the Dow did close +409 points, +1.24% on the session. The blue-chip index is now once again positive year to date. The S&P 500 closed at +1.19%, while the Nasdaq grew +1.28%. Winning the day was the small-cap Russell 2000, which gained +2.21% for the session, and has also crossed back into positive territory for the year.
It felt like something of a tension release, with debt-ceiling negotiations looking to be conducted in earnest. There is also an options expiration pending soon, so some of this might be market positioning ahead of this. In any case, it’s the best trading day since May 5th on the Dow, with the S&P back up to last week’s high. A slight pop in regional banks today helped Financials up +2% on the day, as were Consumer Discretionary and Energy.
Cisco Systems (CSCO - Free Report) reported fiscal Q3 earnings after today’s closing bell, typically beating on the bottom line by a small amount (trailing four-quarter average earnings beat is +1.77%; Cisco has not missed on earnings since we recalibrated tech earnings back in early 2014): $1.00 per share versus 97 cents expected. Revenues in the quarter of $14.57 billion easily surpassed the $14.39 billion. Guidance for the current quarter and full fiscal year were also heightened.
Cisco Secure Network — including its networking systems, routers, etc. outperformed expectations in the quarter, and the company continues to scale its cloud offerings. It’s also been able to retain pricing power where some competitors have not. These factors are leading the company toward further margin expansion. Cisco came into this earnings release with a Zacks Rank #3 (Hold), but we will keep an eye on whether the upped guidance will lead analysts to bring the tech giant a level higher.
Tomorrow morning, besides new Jobless Claims data, we’ll see Existing Home Sales for April and Philly Fed for May. The home sales numbers are expected to come in lighter month over month, while Philly Fed looks to recover from a big drop in productivity reported a month ago. These are all items that continue to illustrate a cooling economy that nevertheless continues to chug along. We also expect Walmart’s (WMT - Free Report) earnings out before the opening bell.
Image: Bigstock
Nice Market Rebound as (Some) Tensions Release
Markets rebounded nicely today across all major indices after Tuesday’s moderate selloff. Though off session highs a bit, the Dow did close +409 points, +1.24% on the session. The blue-chip index is now once again positive year to date. The S&P 500 closed at +1.19%, while the Nasdaq grew +1.28%. Winning the day was the small-cap Russell 2000, which gained +2.21% for the session, and has also crossed back into positive territory for the year.
It felt like something of a tension release, with debt-ceiling negotiations looking to be conducted in earnest. There is also an options expiration pending soon, so some of this might be market positioning ahead of this. In any case, it’s the best trading day since May 5th on the Dow, with the S&P back up to last week’s high. A slight pop in regional banks today helped Financials up +2% on the day, as were Consumer Discretionary and Energy.
Cisco Systems (CSCO - Free Report) reported fiscal Q3 earnings after today’s closing bell, typically beating on the bottom line by a small amount (trailing four-quarter average earnings beat is +1.77%; Cisco has not missed on earnings since we recalibrated tech earnings back in early 2014): $1.00 per share versus 97 cents expected. Revenues in the quarter of $14.57 billion easily surpassed the $14.39 billion. Guidance for the current quarter and full fiscal year were also heightened.
Cisco Secure Network — including its networking systems, routers, etc. outperformed expectations in the quarter, and the company continues to scale its cloud offerings. It’s also been able to retain pricing power where some competitors have not. These factors are leading the company toward further margin expansion. Cisco came into this earnings release with a Zacks Rank #3 (Hold), but we will keep an eye on whether the upped guidance will lead analysts to bring the tech giant a level higher.
Tomorrow morning, besides new Jobless Claims data, we’ll see Existing Home Sales for April and Philly Fed for May. The home sales numbers are expected to come in lighter month over month, while Philly Fed looks to recover from a big drop in productivity reported a month ago. These are all items that continue to illustrate a cooling economy that nevertheless continues to chug along. We also expect Walmart’s (WMT - Free Report) earnings out before the opening bell.
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