Stocks Rise Ahead of Fed, Cisco

Stocks rose Tuesday ahead of the Fed’s decision on interest rates and Cisco’s earnings.

The Nasdaq rose 4 to 1401, the S&P 500 gained 7 to 915, and the Dow rose 106 to 8678. Volume fell to 1.33 billion shares on the NYSE, and 1.7 billion on the Nasdaq. Advancers led 16 to 15 on the NYSE, but decliners led by a few shares on the Nasdaq. Upside volume was 57% on the NYSE, and 45% on the Nasdaq. New highs-new lows were 25-26 on the NYSE, and 43-15 on the Nasdaq.

After the close, Computer Sciences and priceline slipped on disappointing earnings reports. missed earnings estimates but beat revenue estimates.

During the day, Applied Materials lost 4% after announcing layoffs. Intel dropped 2%.

Hutchinson rose 5% after beating estimates.

IBM slipped 1% on news that earnings will be reduced by the PwC Consulting acquisition.

Cisco gained 3% ahead of Wednesday’s earnings report.

Synopsis surged 16% on positive guidance.

Adobe fell 5.7% on concern about competition from Microsoft under the antitrust ruling.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the story link at the top of the newsletter.

No reversal for the market today, but the internals on today’s rally were unimpressive: volume, advance-declines, upside volume and new highs all deteriorated today despite higher closes on the indexes. The market will have a lot of news to digest tonight and tomorrow between elections, the Fed (a quarter point rate cut is expected at 2:15 p.m. tomorrow) and Cisco’s earnings, so the deteriorating internals may just suggest hesitance ahead of all that news. Still, the market is giving some hint of a reversal the last two days, so it’s possible the news gets sold. Thursday is an interesting cycle turn date, with Fibonacci turns off the August highs and October lows. The next cycle dates of import are November 25-26. The Nasdaq (first chart below) has a nice lower trendline that lines up with 1360 support, and 1347 is also important support. 1426.76 is major resistance. The Dow (second chart) and S&P (third chart) appear to be turning up out of consolidations, a potentially bullish development if the internals can improve. Resistance is 8726-8762 on the Dow and 924 on the S&P, and support is 900 on the S&P and 8500 on the Dow.

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