[Chart courtesy of MarketWatch.com]
1. Moving the Markets
After nosing into the red in late-morning trading, all three major benchmarks climbed back into the black to close the day. Analysts are eyeing the key 2000 level on the S&P 500 index, as that level now is viewed as a ceiling of sorts for stocks as they look to rebound further. A break above 2000 would boost hopes that the uptrend that began Friday has legs and that the market is regaining its bullish stance.
Today, traders were also bracing for the unofficial start of the third-quarter earnings season, which kicks off with very low expectations Thursday when aluminum maker Alcoa (AA) reports. For the third straight month, the profit-reporting season begins with Wall Street analysts predicting a contraction in earnings.
A possible market-moving event occurs Thursday, when the Fed releases the minutes of its September meeting. Stocks, of course, have been hurt by uncertainty surrounding the start of rate hikes, but have recently gotten a boost after Friday’s weak jobs report resulted in Wall Street pushing out the so-called Fed “lift-off” into early 2016.
It was a wild ride, but all of our 10 ETFs in the Spotlight participated in the reboud and closed higher. The leader of the day was Healthcare (XLV), which added +1.53%. Lagging the group was Consumer Discretionaries (XLY) with +0.31%.