The S&P 500 and Nasdaq did a nice job of building on yesterday's gains. Facebook (FB) provided a nice boost but the main factor at work today was worry that this market isn't going to pull back much very soon because of the very dovish Fed. The Fear of Missing Out (FOMO) is become more pronounced as market players try to keep pace with the best month for the indices in a long time.
Amazon (AMZN) just reported revenues and earnings that are ahead of estimates but its guidance is soft. It traded up more than 3% initially but is now negative.
The other FAANG names that have reported benefited from low expectations. But the rally of the last few days created a higher hurdle for Amazon. The problem with an earnings season theme of "better than feared" is that it tends to price in the good news and not leave too much more upside.
Other things that are working in the bulls' favor include the vague comments about how progress is being made on a China trade deal. Today there was a headline 10 minutes before the close and that helped to take the indices back to the intraday highs.
There is no question that things are getting stretched to the upside but the bulls are anxious for more. With the Fed providing support, there are now fewer worries about a substantial give-back of recent gains.
Have a good evening. I'll see you tomorrow.