News that Intel posted its best quarter ever is helping to drive U.S. stock markets higher in after-market trading. Fundamental and technical factors drove U.S. stock index futures higher throughout the day. Expectations are for Asian and European traders to act on the Intel news, leading to the strong possibility of a higher opening tomorrow morning.
Fundamentally good quarterly results from Dow component Alcoa and railway giant CSX Corp. fueled investor optimism during Tuesday’s trading session. Traders leaned heavily on the long side of the market due to expectations of better-than-expected earnings and strong guidance this earnings season. Many traders had feared ahead of earnings season that European sovereign debt issues and a slow down in the U.S. economy would hurt earnings and lower guidance for the third quarter.
After the markets closed today Intel reported its quarterly earnings. This report proved that there was great demand for computers despite recent reports indicating a global economic slowdown.