From the Wall Street Journal’s “Stock Futures Wobble Ahead of Coca-Cola, McDonald’s Earnings” posted early Wednesday:
Stocks were poised to waver around record highs as investors awaited results from more of the biggest U.S. companies…
Solid quarterly earnings from American corporations have quelled the investor concerns about supply-chain problems, inflation and Chinese economic growth that rattled markets at the start of fall. The S&P 500 is up 6.2% for October and on course for its biggest monthly advance since November.
“Investors got fairly gloomy in September, clearly against the backdrop of all sorts of macro concerns,” said Paul O’Connor, head of the multiasset team at Janus Henderson Investors. “The broader story from results is that companies are managing these dynamics pretty well, and also managing expectations fairly well.”
Money managers still have worries, ranging from the fate of President Biden’s infrastructure and social-spending plans to the potential unwind of Federal Reserve stimulus measures that have goosed markets since early 2020. For now, though, many investors say they are sticking with stocks in the expectation of modest if bumpy returns through the end of the year.
Patterns: Engulfing line (bearish) spotted. Max pain has moved to $147, up from $146 yesterday.