|Earnings continue to be bought|
|Written by L.A. Little|
|Wednesday, 23 January 2013 06:32|
Other than last Thursday, the earnings have mostly been bought across the board. Sure there are a few names that have disappointed and been hit or had run so far that some profit taking kicked in, but in general, it's been buy the earnings - not sell them. Last night and tonight were the most critical earnings to-date with Google, IBM and a slew of other tech names reporting. How tech stocks fare in the earnings parade is important because it has been the weakest link in the market's march higher. The verdict so far was a resounding "buy" with GOOG up 5% and 4%. Both have large weightings and will make it difficult for any real selling to occur today.
Apple reports tonight and will be the pinnacle report as it has sold down some 32% from the highs overall. One has to think that it has discounted some pretty bad news already and unless its a complete bust, you would think with that setup the earnings are likely to be bought or at least work sideways at worst. We will see soon enough.
All in all, its more of the same. The market wants to move up. The problems haven't gone away - they just don't matter right now.