The trouble I have is that 75% of the companies reporting second quarter results so far have exceeded expectations. One would think that alone could help calm nerves. It has not. Comments from the Fed on lowered future economic growth and a return to weak consumer sentiment apparently were more powerful forces in directing the market.
So although the present seems fine from the corporate point of view, speculation on the future is a more powerful force. Its like pre-anxiety worry.
Reuters: Stocks eye earnings after ugly data
This week, investors will also hang on the words of Federal Reserve Chairman Ben Bernanke when he gives his semi-annual testimony on the economy and monetary policy to members of two congressional committees. He will appear before the Senate Banking Committee on Wednesday -- the same day that President Barack Obama will sign the massive Wall Street regulatory reforms into law. On Thursday, Bernanke will speak to the House Financial Services Committee.
According to Thomson Reuters data through July 16, 48 companies in the S&P 500 Index have reported earnings for the second quarter, with 75 percent having topped analysts estimates, 13 percent in line with expectations and 13 percent below expectations.
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Corps. have divorced themselves from their customers and their employees ( same group) who are scared shit less that they will be fired by them or have a family member or friend that is already unemployed, so don't spend as a result. Of course that has no effect on the top people and they deeply resent the fact that the media says anything about these invisible people who are supposed to find jobs somewhere or another. The bottom line is Corps. and they're owners and top mgrs. are swimming in cash and refuse to cut loss of any of it and hire. The end result is a deepening Recession for the rest of us.
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