Poor earnings fundamentals caught up to the markets today, as we
saw plenty of well-known companies feeling selling pressure from
investors.
Yesterday's early release of disappointing Google (
GOOG
) numbers set the stage for weak after-hours and Friday morning
sessions. Some of the biggest disappointments we were watching
today included Parker-Hannifin (
PH
), McDonald's (
MCD
), Microsoft (
MSFT
), General Electric (
GE
), and Baker Hughes (
BHI
). There were some pockets of strength however in today's weak
tape. Honeywell (
HON
) and Capital One Financial (
COF
) bucked the early selling following better-than-expected
results.
We've covered all of this week's pivotal earnings reports in
depth on Dividend.com, so be sure to check out
The Dividend Daily
for all the latest important news in the world of dividend
stocks.
Remembering the Crash
The business media is having a ball with the 25th anniversary
coverage of the Black Monday Crash of 1987. The thing is, the media
circles this date on its calendar literally every year as a way to
get investors back on the ledge and keep them moving in and around
the markets. This practice goes hand in hand with most of the media
focus today pushing investors to check the financial scoreboard as
frequently as possible.
As a result, many modern market watchers are more like gamblers
than real investors. It's gotten to the point where most people
will simply ask "What did the market do today?" to get a gauge on
the state of stock investing. You can bet there will be plenty of
discussion on whether another stock market crash similar to 1987
could happen today. I'm sure there will be guests on both sides of
this potential scenario paraded on business television all day
long.
Anyone that reads my newsletters knows I shake my head often
when I talk about today's business media and the "cheap pop"
tactics they use to bring in ratings and placate advertising
sponsors. As I always say, you should find yourself a few key
sources of financial information that can keep you focused on
building wealth. The rest is nothing but noise.
Consider what really matters to your bottom line, and leave the
sideshows to others who think entertainment is essential to their
investing results.
Dividend Stock Removed from Recommended List
We removed another dividend stock from our
Best Dividend Stocks List
this morning. We still like the company overall, but would wait to
add new money to the shares for now. Check out the name we
downgraded along with a full explanation
here
.
Looking ahead to the next week for stocks, fourth quarter
earnings will continue to pick up considerably. On tap are results
from the likes of Caterpillar (
CAT
), Boeing (
BA
), Altria Group (
MO
), and Procter & Gamble (
PG
), just to name a few. The focus will also continue to be on the
economic data, the Presidential election, and as usual, the latest
Wall Street analyst calls.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
.