Morgan Stanley jumped more than 11% on Thursday after posting second quarter results that exceeded Wall Street's expectations. The massive jump helped drag other financial stocks higher and makes it likely that big banks like Goldman Sachs, Citigroup and Bank of America, if they hold today's gains, have reached a selling climax and are poised to turn higher and join the bull market.
Meanwhile, airlines are flying low on the charts because of sharply higher fuels costs. United Continental reported 34% higher fuel costs; US Airways said they were 53% higher than in the second quarter of 2010.
Crude oil has been coming down in price and that should help the airlines this quarter, as long as demand for seats remains strong. As we show you in the Market Blaster video below, carriers like JetBlue Airways and Southwest Airlines are still due to report in coming weeks.
[forbesvid id="fvn/market-blaster/mstanley_unionp_7_21_2011" showid="80"]
There's another big breakout, this one to new highs, for Intuitive Surgical, maker of the da Vinci robotic surgery systems. It shot up to a new all-time high above $415 as earnings topped views. The stock has been a real screamer and offered many enticing buying points as it plumbed oversold lows in the past month.
[wikinvestchart exchange="NASDAQ" ticker="ISRG" range="recent" rolling="3 months" height="365" width="570" live_quote="true" annotations="false"]
Intuitive Surgical is up 385% since its bear-market bottom at$85 per share in March 2009.
The hard reality of earnings season is that some companies will be brutally slaughtered if they fail to deliver the goods. On Thursday, that company was online travel site Travelzoo. Both earnings and revenue came in far below estimates and the stock was gored, losing 34% in value to close at $56.40 from $85.71 a day earlier.
- bull market
- Intuitive Surgical
- Goldman Sachs
- da Vinci robotic surgery systems
- Crude oil
- US Airways
- JetBlue Airways
- Southwest Airlines
- Bank of America
- Morgan Stanley