Rising On Expectations

Heavyweights Apple and IBM beat Street estimates yesterday, but it wasn’t good enough to appease the investing community. Subsequently, shares sank in afterhours trading, although the market had risen prior because of high expectations.

To see how nutty market reaction can be, you only need to look at how Citigroup was cheered, even though their real earnings were dismal but artificially propped up due to reduction of its loan-loss-reserves.

In regards to the overall market, the major indexes managed to look beyond chip and oil service stocks and moved higher into the close. Lending a little support was a jump in the Homebuilders Housing Index; however, it’s far from being in the range that would be considered optimistic.

Crude oil and gold rose, interest rates were lower, and the dollar eased against major currencies. On the agenda today, will be more earnings along with reports on housing starts and building permits.

As I am writing this in Germany at 3 am PST, the futures are slightly negative for the Dow and S&P; 500, but sharply lower by about 1% for the Nasdaq.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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