К основному контенту

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? The Nasdaq Index was up 47+ points Tuesday. Inquiring minds are asking how many stocks participated in the rally. The answer was 47 (headed into the close). , it pays to be selective. However, after hours Broadcom was down 11% to $37.35 so we may find out Wednesday that semiconductors are no longer positive for the year. Those seven make up 57% of the $SOX index and I see no bargains even after this substantial pullback from the summer highs. Where's the value? I keep waiting for good news to be sold. We have seen bad news finally start to matter in the S&P 500, but good news as in today's Apple earnings has been bought to excess as evidenced by excessively bad breadth. Perhaps Wednesday is the day, perhaps not, but the after hour's indication following Tuesday's narrow rally tech love fest are pointing that direction. Earnings for the quarter ended Sept. 30 skyrocketed to $80 million, or 19 cents per share, from $19 million, or 5 cents per share, during the same period last year. Revenue climbed 41 percent to $3.26 billion from $2.31 billion in the year-ago quarter. Analysts had predicted $3.14 billion in sales. Shares of Amazon. com fell $9.30, or 9.3 percent, to $91.52 in after-hours electronic trading, after adding $9.53, or 10.4 percent, to close at $100.82 Tuesday. Nasdaq index buyers are dancing the same tune as Citigroup (C) CEO chuck prince who right before the mammoth SIV problem started last summer stated “ When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing Buyers escaping the mess in financials are now rushing head over heels into the Nasdaq Index without bothering to see what the risks are in technology. For more on this idea see Todd's post Reminiscent of Spring 2000, the Nasdaq index is once again priced for perfection. One thing is certain: Perfection Can't Last. This post was written very early in the morning. As of 11:00 AM Wednesday, almost off all the Google lovefest has been given back. The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

Комментарии

Отправить комментарий

Популярные сообщения из этого блога

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? Moody's Investors Service on Thursday placed Ambac Financial Inc (ABK), which insures more than $500 billion in bonds, on review for a possible ratings cut, an event that could trigger similar downgrades on billions of dollars of debt. A cut could mean the ratings on the bonds it insured -- which amount to $556 billion in value -- would also be lowered, forcing the owners of those bonds to mark down the value of their portfolios. Moody's announcement came after Ambac, hard hit by the turmoil in credit markets, said it was recording a $3.5 billion write-down, equivalent to nearly two-thirds of its net worth, and plans to raise $1 billion in new capital to maintain its ratings. MBIA Inc (MBI), the world's biggest bond insurer, sold $1 billion of surplus notes last week to shore up capital and preserve its crucial triple-A rating. 'The markets are...
Отправить комментарий
Далее...

This post will address the relevance of the Fed after...

This post will address the relevance of the Fed after a further continuation of the 'Saga of Sonnypage', an Atlanta area real estate broker. Sonnypage has this update to share, followed by my thoughts on the Fed, the economy, and housing. Sonnypage was highlighted in Lights Out in Georgia on 2006-07-27 and Soft Market Debris on 2006-08-02. As you can see from the date of Sonnpage's post, this is slightly out of sequence. Here goes from Sonnypage:Sonypage - 2006-07-30Most of the regulars here know that my wife and I are Realtors, a husband and wife team, who practice just north of Atlanta. Our business is still mostly in the towns of Roswell and Alpharetta, but now also increasingly further north, up into Cherokee and Forsyth counties, and up to Hall County on Lake Lanier. Our price range is all over the board, from a low within the last year of $125,000 and a high of $1,250,000. We are strictly residential, no commercial. We have incorporated ourselves, but are still indepe...
Отправить комментарий
Далее...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? A certain dose of market discipline in the form of lower prices might be healthy, but market forecasters currently project over two million defaults before this current cycle is complete. The resultant impact on housing prices is likely to be close to -10%, an asset deflation in the U. S. never seen since the Great Depression. The ultimate solution, it seems to me, must not emanate from the bowels of Fed headquarters on Constitution Avenue, but from the West Wing of 1600 Pennsylvania Avenue. If we can bail out Chrysler, why can’t we support the American homeowner? The time has come to acknowledge that there are precedents aplenty in the long and even recent history of American policy making. This rescue, which admittedly might bail out speculators who deserve much worse, would support millions of hard working Americans whose recent hours have become ones of fr...
Отправить комментарий
Далее...