S&P 500 Nears 5,810 as Earnings Beat Forecasts: HCA, Aon, Centene Lead the Way

The S&P 500 is at 5,810 and rising as the economic numbers and sentiment are good. That’s a big bounce back from recent lows as the index hit an intra-day high of 5,818.

Strong data on durable goods and the revised Michigan Consumer Sentiment Index is helping to boost confidence and the environment is good for stocks. And the dollar is steady and the Fed is expected to be cautious on rates which is driving investors into risk assets like stocks.

The Fed is expected to be less aggressive on rates and that’s adding more fuel to the fire. Now the market is expecting a slow and steady approach to policy which means sustained growth and more stock market strength. This is showing up across the S&P 500 where strong earnings are helping to fuel the rally.

Corporate Earnings Drive Optimism in S&P 500

Earnings season is still supporting the S&P 500, with several big names beating estimates. Friday’s earnings from HCA Healthcare, Colgate-Palmolive, Aon and Centene were strong and helped sentiment.

• HCA Healthcare (HCA): $4.88 EPS, missed estimates of $4.96. Revenue was $17.49 billion, close to estimates of $17.54 billion. Market cap $102.95 billion.
• Colgate-Palmolive (CL): $0.91 EPS, beat estimates of $0.88. Revenue was $5.03 billion, above estimates of $5.01 billion. Consumer goods are showing resilience. Market cap $81.5 billion.
• Aon (AON): Beat estimates with $2.72 EPS, above estimates of $2.48. Revenue was $3.72 billion, above estimates of $3.69 billion. Market cap $77.52 billion.
• Centene (CNC): Beat big time with $1.62 EPS, vs estimates of $1.41. Revenue was $42.02 billion, above estimates of $38.02 billion. Market cap $32.41 billion.

More evidence of the overall good economy and corporate health. Earnings are beating and investors are moving out of bonds and back into stocks.

S&P 500 (SPX) Price Forecast: Technical Outlook

Technically the S&P 500 is supported by the uptrend line around 5,775 which has held the last few sessions. Index is testing the 50 period EMA at 5,810 which is a key pivot point to decide if the index will continue to go up or pull back. RSI is at 47.49 which is neutral market sentiment with room for more up or correction.

If S&P 500 holds above 5,775 the next immediate resistance is at 5,845. A break above this could take it to 5,875 and potentially 5,905 in the short term. If it fails to hold above 5,775 it could pull back to 5,745 and 5,714.

Summary

As S&P 500 continues to go up with strong earnings and good economic data the market is cautiously optimistic. With HCA Healthcare, Aon and Centene earnings beating estimates investor sentiment will remain high in the short term. But with the November 5th presidential election coming up market will be volatile and traders should be aware.

Key Insights:

• The S&P 500 is supported by an upward trendline at 5,775, with resistance at 5,845.
• Earnings reports from HCA, Aon, and Centene exceeded forecasts, boosting investor confidence.
• Political uncertainty ahead of the election could introduce volatility, impacting the index’s trajectory.