Dividend Market-Up for July 16 (GE, BAC, GS, MA, V, MSFT, IBM, more)
Earnings season is really starting to kick into gear and we have seen a shift in reactions from early euphoria to disappointment surrounding key companies.
Bank of America ( BAC ) , General Electric ( GE ) , and Mattel ( MAT ) were examples of companies that Wall Street is pushed the sell button on today. We have Mattel ( MAT ) on our recommended list, so we of course will be looking deeper at the company's news to see if it warrants a downgrade.
Getting back to the "lower highs" mention in our title today, there are quite a few stocks which, despite the gains the last few weeks, are actually trading lower than where they were 3-6 months earlier. From a technical standpoint alone, this is a concern. Stocks making lower highs tend to continue the pattern over time and we do look at this when we are evaluating turns in the market as well as economy. This is the problem with the short-term focus represented all over business television and other media. Good news from BP plc ( BP ) capping the oil leak yesterday suddenly brought the bullish case breakdown on the company. Yet no one mentioned the stock went from $62 to $26 and was back to only $37. BP has also suspended their dividend payouts for the rest of the year, and there is talk of various asset sales. The case to be made would be how the company will look if key assets get sold. Trust me the vultures out there are not looking to swoop in and pick off the underperforming parts of the company. The key is not to be sidetracked by what can only be a 1-day spectacle. When you are thinking of investing, the timeframe needs to extend out far beyond the current day of trading.
As for today's selling, financials led the way with Mastercard ( MA ) and Visa ( V ) pushing lower. Goldman Sachs ( GS ) was up on news it had reached an agreement with the SEC to settle alleged fraud charges. CME Group ( CME ) really broke down during the session and is a name we downgraded from our "recommended" list a while back. Volume picked up on the NYSE, with 5.3 Billion shares traded by the close.
Looking ahead to next week, we will be hit with a deluge of earnings from the likes of IBM Corp ( IBM ) , Pepsico ( PEP ) , Microsoft ( MSFT ) , Texas Instruments ( TXN ) , and Coca-Cola ( KO ) just to name a few. Be sure to catch our latest watchlist updates on Dividend.com Premium this weekend!