Sunday, January 18, 2009

Tuesday Here We Come


Obama taking office on Tuesday will be an amazing welcome and change.

The new president takes office with a massive burden of both war and the "Great Recession."

The country is hurting primarily from the exploitative and ill conceived policies of the Bush administration.

Wall Street is closed on Monday in observance of the Martin Luther King holiday. However on Tuesday while Obama takes office, Wall Street will deliver its first of thousands of verdicts on the Obama administration.

The upcoming week will see earnings reports from several standard bearing corporations like GE and Apple. The reports will show profit losses as business has contracted.

Offering up a guess, I would imagine that Wall Street will show gains with the new president for a brief period, perhaps a week, maybe two weeks, maybe 3 or 4 days. Eventually the reality of millions of jobs lost, increasing corporate contraction, and bank troubles will bring the market down again.

We will have a brief euphoric period followed by the harsh reality of the recession's momentum. This time however we will no longer have Bush, that alone will be a great boon.

Reuters: Obama, earnings to call stocks' tune
Earnings set to pour in next week include reports from Dow components International Business Machines Corp, Johnson & Johnson, United Technologies, Microsoft and General Electric.

Other technology bellwethers reporting results are Google Inc and Apple Inc, which on Wednesday said Chief Executive Steve Jobs would take a medical leave of absence through June.

Even though quarterly results are likely to be poor, some analysts argue the market will discount weak results.

2 comments:

Glynn Kalara said...

I read a report it also had a map. Sorry lost the link. It said basically , that the only places in the country where there is still positive economic news is in the RED areas. The RED zone is politically reliable for the BIG RED Corps. In other words, screw the rest of us were traitors and part of The Blue Union.

Jim Sande said...

Yes, many of the red states are experiencing lower unemployment numbers. Except, I think South Carolina is in the top 5 of the highest unemployment.

Part of it is simply numbers, the highest population centers are in blue states, for the most part.