Strong Quarterly Results, Tax Reform Talk Provides Lift Ahead Of French Vote
April 21, 2017 - 10:14am
After stumbling through much of March and early April seeking a positive catalyst, the stock market seems to have found one: Strong earnings.
The latest companies to exceed Wall Street analysts’ expectations were Visa Inc (NYSE: V) and General Electric Company (NYSE: GE), both of which posted gains in futures trading. The entire market seems to be getting a lift not only from earnings, but also from technical buying and from Treasury Secretary Steven Mnuchin saying the administration is going to release a tax reform plan, “very soon,” according to media reports.
Anxiety over the French vote this weekend could put a cap on any rallies, however, as many investors might shy away from taking on big positions ahead of this potential market-moving event.
From a technical standpoint, the S&P 500 (SPX) engineered a close Thursday just a notch above what had been key resistance at 2355, near the 50-day moving average. The push through that level could be seen as a bullish development for those who watch technical indicators. Sometimes this sort of price movement can draw new buying interest.
Visa’s results late Thursday came after American Express Company (NYSE: AXP) reported a strong quarter.
The upbeat earnings from two credit card companies within 24 hours of each other may buttress thoughts that consumer confidence could indeed be translating into more consumer buying, something that hasn’t been so evident from recent government economic data.
It’s always good to listen to what ...Full story available on Benzinga.com
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