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Stocks Up Again, S&P Hits New All-Time High
Stocks closed solidly higher yesterday with the S&P hitting a new all-time high milestone.
Strong earnings continue to propel stocks higher.
And while there will undoubtedly be some additional high profile misses before this earnings season is over (Alphabet (i.e., Google) being one of them as they just missed on earnings after the close yesterday), it's clear that this earnings season overall is coming in better than expected.
There's also plenty of optimism on the U.S.-China trade deal. President Trump on Monday said that things looked to be "ahead of schedule to sign a very big portion of the China deal." The U.S. and China are expected to formalize and sign Phase One of the agreement when both leaders meet in mid-November at the Asia-Pacific Economic Cooperation summit in Chile.
Traders will shift their attention to the Fed tomorrow (Wednesday) when they meet again to decide if they'll cut interest rates for the 3rd time this year. Odds are now at more than 95% that they'll cut rates by another quarter point.
In the meantime, earnings continue to impress.
And I'm expecting more gains in the market.
See you tomorrow,
Kevin Matras
Executive Vice President, Zacks Investment Research
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