Positive results for second quarter earnings have pushed the
S&P 500 to the support/resistance point at 1,115 yesterday. And it looks
as though that level will fall easily today.

FedEx (NYSE:FDX)
doesn’t report until September 16, but the company was kind enough to raise
its earnings guidance yesterday, and that helped encourage investors that the
global economy is improving.

Shipping stocks are always a good measure of economic
activity. When business is growing, more packages are sent and shippers do
well. And so, along with recent positive results from
UPS (NYSE:UPS), FedEx’s preannouncement is great
news.

Yesterday, we
discussed the potential of the European bank stress tests to boost bank
stocks. As I noted, even thought the stress tests may have been weak and not
really given us a true picture of the health of European banks, what matters
is how investors respond to the news.

UBS
(NYSE:UBS) and Deutsche Bank (NYSE:DB) both
reported better than expected earnings this morning and the stocks are
posting solid gains. So for now, at least, we can safely say that investors
are bullish on European banks.

That removes another area of uncertainty.

Still, it would seem reasonable that stocks would take a
breather sometime soon. Tomorrow’s, we get some market moving economic data
in the durable goods orders number.

Headlineearnings
from big technology companies like Intel (Nasdaq:
INTC), Microsoft (Nasdaq:MSFT) and Apple
(Nasdaq:
AAPL) have been among the biggest reasons for the
rally we’ve been enjoying. The reason is simple: strong earnings from these
companies are proof that corporations and consumers are spending money on new
computers, software and cool gadgets like the iPad.

I recently uncovered a tech turnaround that could easily put
51% gains in your pocket. This company used to be a household name. In fact,
their products were so successful that the company name is now listed as a
verb in Webster’s dictionary.

But the Internet and digital economy crushed this company’s
business. The stock price fell from a high of $62 in its heyday to below $5 a
share.

Then in 2009, the company hired a new CEO who put the
company on a new path that embraced the digital economy. Now, revenues are
flying high again. Earnings are up 62% year over year. And the stock price is
breaking out right now.

The stock price is still below $10, but it won’t be for
long. You can get details HERE.

Maguire Properties (NYSE:MPG)
hit $3.13 a share this morning. That’s a 15%-20% gain from
where I recently recommended it to Daily Profit readers.

If you bought Maguire this time around, I’d love to hear
from you. Write me at
[email protected].

Oil pricesare above
$79 a barrel. Considering that two bullish catalysts for oil prices – the BP
(NYSE:BP) oil well leak appears to have been capped and Tropical Storm Bonnie
is no longer a threat to Gulf of Mexico oil production – the strength in oil
prices is significant.

Oil company earnings kicked off today with BP. The company
reported a loss related to the
Gulf of Mexico oil spill. But it
would have reported a better than expected gain absent those spill-related
charges.

That bodes well for the small oil exploration companies in
the Energy World
Profits
portfolio. I’m especially looking forward to
hearing from the companies that have been ramping up production in

North
Dakota
‘s Bakken oil pool. There is tremendous
upside for these stocks in the months and years ahead.

Published by Wyatt Investment Research at