Complacence on Upcoming Earnings
"Even if the news next week is favorable, it might not translate to higher prices." --- Nick Kalivas, VP of Financial Research, MF Global
Almost 50% of the companies in Dow Jones industrial average are set to release a quarterly report this week. And though expectation are very high, stocks have muted reaction to more-than-anticipated sales and profits. As some traders put it, the stock market has grown “complacent”. It would take more than blockbuster earnings and concrete economic data to move it higher. However, it is uncertain what that push could be.
Concurrently, analysts also believe that market needs to take a repose for a while. After climbing steadily since December, the stocks bumped some resistance last week. The Dow added 1.2%, the S&P 500 ended flat last week, while Nasdaq fell at 1.7% over the last five trading days. Furthermore, Investors are also expecting this week’s Federal Reserve’s statement to be a snooze.
This incident only shows that an onslaught of earnings may not always translate to higher prices.View Article Source »