Wednesday Outlook: Positive Earnings?

January 27, 2009


Again bulls were able to effect a few “stick saves” as markets were wobbly early. But there’s something to be said for bulls who seem perfectly able to absorb a blizzard of bad news (Consumer Confidence at lowest level since records were maintained back to 1967 and home prices took a record dive). But, oh pish-posh, let’s look at really good news on earnings, shall we?

• AXP rose because it lost less money than feared. Great!
• TXN rose because earnings only fell 86% and they’re firing thousands. Great!
• X rose nearly 7% because it made a profit due to an acquisition. Wow, more accounting wizardry!
• NFLX rose sharply because consumers are retrenching and making their own popcorn and enjoying their big screens they bought with the last stimulus check.
• And lastly, but most fun, were statements that the markets are now rising because financial companies are done reporting and, well, out of sight out of mind.

Volume was light today and breadth was positive.

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