When companies like J&J conclude mega deals like this one it is a positive for equity markets, as it indicates there's confidence in the economy and there's excess corporate cash waiting to be invested.
When companies like J&J conclude mega deals like this one, it is a positive for equity markets. It indicates there's confidence in the economy and there's excess corporate cash waiting to be invested.
The stock market welcomed both the CPI report and the decline in oil prices. The Fed can't justify too many rate increases with mild inflation.
The stock is selling around 15 with a 30-percent long-term growth rate, and 15 times earnings. It could double from here,
There are questions as to whether the growth rate is sustainable.
The current earnings and the forward-looking guidance, in general, have not met expectations among a lot of companies.
Companies are finally putting their money into play and that is a vote of confidence in the strength of the economy and a positive for stocks.
The market is caught between good quarterly reports, such as the one from Disney, and the reality of company guidance for future earnings that is far from stellar.
The productivity and labor costs reports abated pressures (over) rising interest rates from the Fed, which is giving a kick to the market. Also, the storm in the East wasn't so bad, so oil pressure isn't bad.
We've just come off a very big quarter and so we have to digest some of those gains.
