Friends
We saw another case of selling the earnings news. Both IBM and Intel (Dow components) had what was at first glance good earnings releases yesterday after the close. But, as analysts drilled down, they discovered flaws. The shares of both had rallied in recent weeks, so both sold off hard during today’s session, accounting for most of the Dow’s losses. The rest of the market was a somewhat mixed situation with the S&P down a little while the Nasdaq was up a little.
By the close, the Dow Jones Industrial Average was down 179 points to finish the day at 30,996. The S&P 500 was down 11 points to close at 3,841. The Nasdaq Composite Index was up 12 points to close at 13,543. Gold was down $11 to trade at $1,854 per ounce, while oil was down $1.01 to trade at $52.12 per barrel WTI.
We suspected that we would learn a lot about how stocks are priced during this earnings season, and that is exactly what is happening. Good numbers aren’t always being met with the share price rising. Let’s see how the next couple of weeks unfold. Next week we will hear from the likes of 3M, GE, Lockheed Martin, Verizon, AT&T, Microsoft, Starbucks, Johnson & Johnson, Apple, Facebook, Honeywell, Boeing and McDonalds, just to mention a few. Stay tuned, it will be a busy week.
Have a great weekend everyone.
