With 85% of S&P 500 companies out with earnings reports this season, over 70% have beat earnings expectations. Yet, the market is down slightly year-to-date. Whether its debt troubles in Greece, Bernanke's more hawkish tone, or worrying unemployment data, the market is absorbing the negatives against a backdrop of strong corporate earnings. Stocks are in consolidation mode as traders await greater clarity on the economic front before making large bets either way.
Up and down, up and down. Trying to figure out this nonsense seems silly. I believe the strong uptrend we were in throughout 2009 has paused for now, stocks are consolidating in a healthy fashion and we may find new leadership down the line as earnings continue to separate the best and the worst.
I really like Akio Toyoda after watching him take a beating from Congress yesterday. He seemed entirely sincere and willing to go beyond the necessary in fixing up Toyota's accelerator problems. I got the distinct impression that these guys are not looking at their "image" rather they want to make quality cars and are embarrassed and saddened by what has happened. I will be watching the stock for a long-term value play in the coming months. This is a classic short-term falter within a great company with unchanged long-term growth prospects.
Up and Down, Spin Around
With 85% of S&P 500 companies out with earnings reports this season, over 70% have beat earnings expectations. Yet, the market is down slightly year-to-date. Whether its debt troubles in Greece, Bernanke's more hawkish tone, or worrying unemployment data, the market is absorbing the negatives against a backdrop of strong corporate earnings. Stocks are in consolidation mode as traders await greater clarity on the economic front before making large bets either way.
Up and down, up and down. Trying to figure out this nonsense seems silly. I believe the strong uptrend we were in throughout 2009 has paused for now, stocks are consolidating in a healthy fashion and we may find new leadership down the line as earnings continue to separate the best and the worst.
I really like Akio Toyoda after watching him take a beating from Congress yesterday. He seemed entirely sincere and willing to go beyond the necessary in fixing up Toyota's accelerator problems. I got the distinct impression that these guys are not looking at their "image" rather they want to make quality cars and are embarrassed and saddened by what has happened. I will be watching the stock for a long-term value play in the coming months. This is a classic short-term falter within a great company with unchanged long-term growth prospects.
