Friends
Earnings season got off to a good start this morning as a bevy of money center banks reported their 4th quarter earnings. The likes of J P Morgan Chase, Bank of America and Wells Fargo all had stellar reports, and the good environment for banks has only begun to get better. The market averages on the other hand can’t seem to get out of their own way. If one sector is up, there is another sector that is down an equal amount. Now, after the Trump surge, a period of sideways action (consolidation) might just be what the doctor ordered. Of course, only time will tell.
As for today’s action, by the close the Dow Jones Industrial Average was down 5 points to finish the day at 19,885. The S&P 500 was up 4 points to close at 2,274. Gold was down $1 to trade at $1,198 per ounce, while oil was down $.50 to trade at $52.51 per barrel WTI. Nat Gas was up $.028 to finish trading at $3.414.
Earnings season will kick into full gear over the next couple of weeks. If the banks are any indication, we could possibly be pleasantly surprised, not only in the 4th quarter numbers, but maybe even the forward looking guidance. Let’s not get ahead of ourselves however. As we have said, stock prices are not cheap and we need earnings to grow to simply justify the level that they are at now, not to mention higher prices. Nevertheless, we would like to see earnings continue to trend in a positive direction after the earnings recession we have recently experienced.
Have a great weekend everyone. Remember, the markets and our office will be closed Monday for the MLK holiday.
Go Texans!
