It’s a great session, and while there is a lot of excitement over the signing of Phase One of China trade deal, the event itself isn’t “news” even if it is history.  There are several messages from the market thus far today.

Earnings Matter

United Healthcare (UNH) had revenue of $60.9 billion and earnings of $5.1 billion, lifting the company’s market cap closer to $300 billion.  It’s the third most important stock in the Dow Jones Industrial Average and biggest weighting in the S&P Healthcare sector.

Goldman Sachs (GS) botched its earnings rollout, as the street was caught flatfooted with the huge earnings miss. The stock turned around as the session has progressed, as there are many have factors in a billion-dollar legal hit.

Weakness in Targets (TGT) sales, was mitigated by management reiterating its earnings guidance for the quarter.

Caution in the Air

The best performing sectors are would-be safe havens with utilities leading the way followed by real estate and consumer staples.

Housing Renaissance 

Mortgage application numbers today were off the chart.

• Purchase +16% week to week, +8% year to year
• Refinance +43% week to week, +109% year to year

The news has helped the S&P Homebuilder ETF breakout to all-time highs.

The market is off the highs after the signing of the Phase One trade deal.