Friends
We got some more, better than expected earnings releases this morning including Coca Cola, United Technologies, Lockheed Martin and Procter and Gamble. Most stocks are reacting well to the positive earnings numbers, with P&G being the exception today. So, it appears that earnings are coming in better than expected/feared, but some stocks had the good news priced in while others did not. The overall effect is that stock indices are challenging all-time highs, and the “earnings recession” crowd might be rethinking their thesis (of course, it is still early in earnings season and we have many more companies left to report).
As for today, by the close the Dow Jones Industrial Average was up 145 points to finish the day at 26,656. The S&P 500 was up 25 points to close at 2,933. Gold was down $4 to trade at $1,273 per ounce, while oil was up $.77 to trade at $66.32 per barrel WTI.
The challenge for the bulls will be to penetrate the old highs and decisively break out to new highs. A stumble here would not be surprising, but the parade of corporate earnings over the next couple of weeks will likely set the tone as to whether new highs will be achieved sooner than later. But, though it is early, earnings have definitely been better than expected. Stay tuned. Have a nice evening everyone.
