Tuesday, February 19, 2013
Stock market indexes remained in positive territory last week for
the seventh week running. But last week's gains were barely
noticeable, highlighting the market's moderating momentum. Hard
to envision the rally continuing into the 8th week given the
absence of any major catalysts. But then again many of us were
skeptical of the rally's staying power to begin with. Like an
Energizer bunny, this market keeps going and going, proving many
of us wrong.
We don't have much on the economic calendar this week aside from
a couple of housing and inflation readings. And the earnings
season has effectively come to an end, though we do have a
handful of notable earnings reports this week from companies like
). The overall narrative for the fourth quarter earnings season
is well established by now, with none of this week's reports
changing it in a material way. The lack of growth
notwithstanding, the Q4 earnings season turned out to good enough
- not great, but not terrible either.
As of this morning, we have Q4 earnings reports from 401 S&P
500 companies, with total earnings for these companies up +3%
from the same period last year. The 'beat ratios' for earnings
and revenue represent a significant improvement from what we saw
in the third quarter, but overall remain in-line with historical
averages. With organic growth essentially non-existent, companies
seem to be moving towards 'purchasing' growth as the growing
M&A announcements indicate.
This morning's headlines indicating a tie-up between
) add to a growing list of corporate deals in recent days. May be
the deal announcements will keep the market momentum going in the
coming days. We will have to wait and see.
AMER INTL GRP (AIG): Free Stock Analysis
HEWLETT PACKARD (HPQ): Free Stock Analysis
NORDSTROM INC (JWN): Free Stock Analysis
OFFICE DEPOT (ODP): Free Stock Analysis
OFFICEMAX INC (OMX): Free Stock Analysis
WAL-MART STORES (WMT): Free Stock Analysis
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Director of Research