The markets are reacting very positively to the news out of Japan. They're literally starting at the funding level to the banking industry before they start raising interest rates. This seems to be taking some pressure off the cyclical sectors around the world. |
The stock market certainly got what it wanted in a lower-than-expected jobs report. If the Fed moves to the sideline and energy prices stabilize, those will be two headwinds out of the way for the stock market in 2006. |
The stock market has an opportunity to break upwards if corporate CEOs and CFOs say some good things, or at least some neutral things, about the outlook, |
The stock market has an opportunity to break upwards if corporate CEOs and CFOs say some good things, or at least some neutral things, about the outlook. |
The trading and the underwriting activity looks favorable. |
There are fears that any supply disruptions could disturb oil markets and such concerns are holding back both economic growth and stock prices. In the absence of any such disruptions, we expect that crude will stay in the $50-$70 range this year and will likely always be on investors' minds. |
This may be one of those years in the stock market where you'll want to sell on Memorial Day and go away until Labor Day. |
We could be into mid-July until we see the Dow break that record. It may take another round of earnings to give it that push. |
What we think occurred is that analysts became too euphoric about earnings expectations at some targeted companies and, unfortunately, they were the first ones to report. |