Stocks closed mostly higher again yesterday, led by the Nasdaq with 1.60%, and the S&P 500 with 0.80%.

Both the Nasdaq and S&P 500 made new all-time highs yesterday, officially erasing the pullback/correction that ensued following the beginning of the Middle East conflict.

What a difference a few weeks can make.

YTD, the Dow is up 0.83%; the S&P 500 is up 2.59%; and the Nasdaq is up 3.33%. But the standout performers this year remain the small-cap Russell 2000, and mid-cap S&P 400 with 9.34% and 7.97% respectively.

Although, with big-tech and AI names surging once again, the Nasdaq and S&P could soon challenge small-caps and mid-caps for top spot on the leaderboard.

Optimism over a longer-lasting peace deal continues to lift stocks. No word on when the next round of talks will take place. But they could resume as early as the end of the week.

In the meantime, the U.S. naval blockade of the Strait of Hormuz remains in effect. And the U.S. Navy has already prevented numerous merchant ships that departed from Iranian ports from passing through.

In other news, MBA Mortgage Applications saw the Composite Index rise 1.8% w/w with purchases off -1.0%, and refi's up 5.1%.

The Housing Market Index increased to 11.0 from last month's -0.2 and views for -2.0.

And the Beige Book report showed most districts reporting slight to modest growth. Consumer spending was steady, hiring continued, but at a slower pace. Wage growth moderated. And sentiment was cautiously optimistic.

Today we'll get Weekly Jobless Claims, Industrial Production, and the Philadelphia Fed Manufacturing Index.

Earnings season is picking up, even though it doesn't 'officially' start until this afternoon when Alcoa reports after the close.

Nonetheless, before the open yesterday we heard from Morgan Stanley who posted a positive EPS surprise of 12.09%, and a positive sales surprise of 3.70%. That translated to a quarterly EPS growth rate of 31.9% vs. this time last year, and a sales growth of 16.0%. They were up 4.52% yesterday.

Bank of America also reported before the open and posted a positive EPS surprise of 11.00%, and a positive sales surprise of 1.09%. That equated to a quarterly EPS growth rate of 23.3%, and a sales growth of 10.6%. They were up 1.82% yesterday.

The solid bank earnings further underscore the resiliency of the economy.

After the close we heard from transportation company J.B. Hunt. They reported a positive EPS surprise of 2.76%, and a positive sales surprise of 3.88%, for a quarterly EPS growth rate of 27.4%, and a sales growth of 4.79%. They were off -2.37% in the regular session before earnings, and up roughly 1.8% in after-hours trade following earnings. YTD, they are up 15.3%.

Today we'll hear from another 40 companies on deck to report, including Taiwan Semiconductor, Netflix, Pepsi, Abbott Labs, and Charles Schwab to name a handful.

I've said it before, and I'll say it again ? earnings season is always an exciting time since stocks typically go up during earnings season. And so far, even though earnings season has just begin, it's off to a great start.

See you tomorrow,