The Dow Jones Transportation Index is one of the most famous indexes. It is an average of twenty companies within the transportation sector. Many analysts and economists closely follow the Dow Jones Transportation Index as a key indicator for the strength of the American economy. If an economy is growing strongly, this would mean that many goods are transported using one or several of the companies within the Dow Jones Transportation Index.
What has been very encouraging over the last two earnings seasons is the strength we’re getting in small-cap technology companies (stock market action aside). A lot of smaller technology companies are reporting a significant improvement in revenues, and that means that consumers are opening up their wallets, if only just a little.
I’m not a fan of large-cap, retail technology stocks as stock market investments…. Read More
No matter how you look at this stock market, the fact of the matter is that a lot of stocks are trading right at their all-time or 52-week highs on the back of mostly flat earnings. This makes it tough to be a buyer. In fact, I wouldn’t be a buyer in this market at all.
Sure, there are trades out there; there always are. And yes, stocks aren’t expensively priced, but that’s the point…. Read More
I’ve been looking at all the earnings to date (they often aren’t a calendar quarter, but a fiscal quarter), and so far, I would say that the majority of companies are beating consensus expectations. Corporate earnings are definitely managed, but this is a good development. If the reduced earnings outlooks in the third quarter are partly responsible for the “outperformance,” then the revenues figures are the real good news…. Read More
There is positive momentum going into fourth-quarter earnings season. The earnings results we’ve had so far from brand-name large-caps are encouraging. We can’t forget, however, that expectations and consensus estimates have come down a lot, especially because of third-quarter earnings results. I think the stock market will be pleasantly surprised when it gets results from the key financial and technology stocks…. Read More
On the day of the Federal Reserve’s announcement regarding targeted low interest rates and a new bond-buying program, the stock market started out strong, only to sell off by the end of the day. This has happened countless times over the last couple of months, and it’s a sign that this market is tired. The stock market is finally seeing through the Federal Reserve, and investors now realize that no further policy action can do anything to help U.S…. Read More