Equities started October and the 4th quarter on solid footing following a week of significant decline. The S&P 500 advanced more than 3.0% at the high of the day and it may move higher in the near term. Good news from GM and the oil patch are helping to support the action and could lift spirits as the peak of Q3 reporting approaches. GM announced it sold 25% more cars this year than last as supply chain issues eased while oil prices rose more than 3.5% on news OPEC+ would cut production by a million barrels this month.

The news from OPEC+ carried through to the oil industry and the XLE which led the market throughout the day. The XLE advanced more than 5.0% on the idea that higher oil and gas prices will translate into strong earnings for the energy sector. The takeaway for the market should be, however, that any improvement to the earnings outlook will be because of oil and energy stocks and not an improvement in the broad economy.