Apr 19th, 2009
Waiting On Earnings
As I said a few weeks back, I have serious questions as to whether or not this current market rally can last, but it’s lasted for six weeks. In that time, the value of the S&P 500 is up a staggering 28.5%! This type of growth is definitely not sustainable; in fact, if it happened over a year rather than a few weeks I think just about all investors would be thrilled.
I am indeed happy with the rally, if for no other reason than it makes me feel better after months of declines. I know it’s not sustainable and I question how the trend will continue (if it continues at all). But are we really past the worst in the economy? I’m not sure, but one thing is coming that could indeed bring the rally to a staggering halt: earnings season.
According to Money.com, 140 large companies will be reporting results this week; very few are expected to be doing better than they did in the previous year, and part of the question is simply if things are better than the low expectations most are facing. For a company like, say, GM, a smaller than expected loss would be a huge plus; even a highly profitable company like Apple, Inc. would be happy with a smaller profit than the previous year (but a profit nonetheless).
Let’s tune in a week from now to see what’s gone on with earnings and how the market reacts to those reports.
[...] Suenaga presents Waiting On Earnings posted at Uncommon [...]
[...] On April 19, 2009, I questioned whether the beginning of earning season would derail the then six we… At that point, since hitting its low in March, the S&P 500 was up a staggering 28.5%. [...]