So far the earnings season has gotten off to an underwhelming start. I think the positive news from Intel is just what the market needed and is likely to lead to a favorable opening on Wednesday.
So far the earnings season has gotten off to an underwhelming start, ... I think the positive news from Intel is just what the market needed and is likely to lead to a favorable opening on Wednesday.
Given that tech companies are already trading at pretty high valuations, these companies' earnings are going to have to really deliver for the stock prices to show a substantial reaction.
I think the last few weeks have probably been frustrating for investors. Earnings have been very positive, but the focus has been on interest rates. Over the next few sessions, it looks like the fear of higher interest rates will probably outweigh the earnings.
Looking into the second quarter, what could move us higher is a decline in oil prices, lower bond yields, solid economic data that is non inflationary and stronger growth on the earnings front.
Today's weak market performance is the result of some worse-than-expected earnings reports and a decline in the consumer confidence report.
We're likely to see a correction this year after the run we've had, as well. But the outlook for third and fourth quarter earnings has been good, and if the economic data continue to improve, we could see a slightly more narrow decline that what people have been expecting.
Earnings for the fourth quarter have generally met or exceeded expectations. We've seen solid reports from a number of different industries, with strength not just in energy, as in previous quarters in 2005.
February has historically been a lackluster month for the stock market. Despite many positive corporate earnings reports, investors should be prepared for some choppy or sideways trading over the near term.
This market is just extremely resilient, and if we don't get a major spike up in energy prices or interest rates from current levels, the strong earnings environment we find ourselves in could help carry the markets higher for several more weeks.
There's a major rise in oil prices, increased investor worry about the upcoming earnings season and you're also seeing some profit-taking after the market's six-week run-up.
Stock prices moved lower for most of the day, but closed off their lows after oil prices retreated. All in all, there was a lot of hesitation before the earnings by the two tech bellwethers.