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Stocks Reverse Higher; Nasdaq Leads As Alphabet Earnings Spark Stock Higher

Stocks reversed higher Monday to start a week chock full of earnings reports, including Alphabet (GOOGL) earnings that came out after the close.

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Alphabet, the parent of Google, leapt as much as 6% after the close, following the company’s second-quarter results. The company reported adjusted earnings of $11.75 a share and sales of $32.66 billion. Analysts expected adjusted earnings of $9.59 a share and revenue of $32.26 billion. The stock is rising above the 1,201.59 buy point of a handle in its base.

Alphabet is just one of many big headliners reporting earnings this week. On Tuesday, Lockheed Martin (LMT), Biogen (BIIB) and TransUnion (TRU) (a member of IBD Leaderboard) announce their results. It is one of the busiest weeks for Q2 earnings reports.

The Nasdaq composite rose 0.3% Monday after erasing a loss of 0.6%. Semiconductor and software stocks were among the top-performing Nasdaq shares. The S&P 500 climbed 0.2% and held to close above the 2800 level, where support is trying to emerge.

The Dow Jones industrial average lagged with a 0.1% decline on a day that saw the industrial make minimal movements. Financial components JPMorgan (JPM), Goldman Sachs (GS) and American Express (AXP) were among the best advancers as the sector rallied.

Volume fell across the board, judging from early figures. Breadth was weaker than the indexes would suggest, with losers over winners by nearly 7-5 on the NYSE and nearly even on the Nasdaq.

Financials Shine

Financials led the market after Treasury yields jumped, snapping out of a three-week period of dull movement. The yield on the bench mark 10-year note rose 7 basis points to 2.97%, the highest level since June 14.

SPDR Financial ETF (XLF) rose 1.3% while banking ETFs were some of Monday’s best exchange traded funds. Several regional banks broke out of bases.

Webster Financial (WBS) cleared a six-week flat base with a 67.96 buy point. The Connecticut-based bank holding firm announced earnings on Thursday, posting a 34% rise in EPS. Popular (BPOP) surged past the 48.27 entry of a flat base. The Puerto Rico-based bank beat profit expectations this morning. Shares closed still in a buy range that goes to 50.68.

Transportation stocks also led. The Dow transports rose 0.7%, expanding a rebound that began on June 28. Trucking, airline and airfreight were among the top 40 of 197 industry groups in late afternoon trading.

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