Exxon Drives Dow Higher
Stocks got off to a positive start in November and continued to make headway on Monday. Historically the last two months of the year have been positive for stock prices and with the Fed likely to keep the pedal to the metal there is a good chance of strong performance. Economic data will likely continue to be mixed on the heels of the recent government shutdown although last week’s ISM manufacturing report showed solid gains. At the end of the week investors will need to absorb October’s employment report which could show quirky results.
Energy shares were mixed on Monday as WTI continued to face headwinds. Crude oil futures are down again earlier in the session but rebounded late in the trading day. As oil prices advance for the first time in five days, shares of Exxon Mobil (NYSE:XOM) was up more than 2% to a 13-week high of $92.01 and well above the 200-day moving average at $89.59.
Last Thursday, XOM reported net income of $7.87 billion, or $1.79 a share, which was down from the same quarter last year, but beat analyst estimates of earnings of $1.77 per share. As a result, shares have advanced 3.6% over the past 3 days.
XOM is poised to test resistance near 95, which were the highs seen in July. Momentum is strong with the MACD (moving average convergence divergence) index printing in positive territory at the highest levels seen in the past 6-months. Support is seen near the 90.50 level which coincides with the 5-day moving average. The only warning sign is the RSI (relative strength index) which is printing near 75, which is above the overbought trigger level and could foreshadow a correction.
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