Traders woke up in a cheerful mood today, shaking off the riots in France and the rising price of oil. Asia was mixed, but the European indexes rose in early trading. U.S. futures were up before the open in New York. Nasdaq futures were up 0.43% after SpaceX reported Q3 earnings that solidly beat analysts’ expectations. Both of Elon Musk’s companies rose in overnight trading: SpaceX was up 8.86% post-market, and Tesla rose 1.42%.
- S&P 500 futures were up 0.24% this morning. The index rose 0.28% yesterday.
- In Europe, the Stoxx 600 rose 0.54% in early trading, and the U.K.’s FTSE 100 rose marginally 0.03% before lunch.
- Asia: South Korea’s Kospi was up 3.29%. Japan’s Nikkei 225 was up 0.85%. India’s Nifty 50 was down 0.66%. China’s CSI 300 was down 0.97%.
- Brent crude was $110 per barrel.
- Bitcoin was at $83,346.
Wells Fargo ‘buy’ signal sees retail traders going against the bears
The recent selloff in stocks has moved Wells Fargo’s sentiment indicator into “buy” territory, meaning that it senses that other investors’ moves in the markets are too bearish and thus you should bet against them. The S&P 500 has risen 89% of the time after the signal appears, by 6.5% on average over the next three months, according to Ohsung Kwon and his colleagues. They also noticed that retail traders are coming back into the market:
Where the earnings growth will come from
This chart from Glenmede shows that projected Q3 earnings in the S&P 500 are expected to total $180 billion, of which $116 billion will come from the Magnificent Seven companies and the rest of the tech industry. (The chart is a little confusing because at the bottom it shows the index reported $618 billion in the previous quarter, then adds the $180 billion expected gain in Q3, for a total of $798 billion.)
Read the full digital edition of today’s Fortune 500 Digest here.
This story was originally featured on Fortune.com