Any shortfall when companies report earnings this month, however, will be greeted far more harshly. After all, stocks have risen five straight weeks and are pushing 18-month highs. Stock buyers have seen data pointing to increasing orders, record productivity and an improving but still-hesitant pace of hiring, all of which should bode well for corporate profits. As a result, they've come to expect stellar first-quarter results. It is no coincidence the last two market pullbacks of 5% to 10% all occurred early in the earnings season. If the market hews to history, "market participants may sell the earnings news," notes Jeffrey Kleintop, chief market strategist at LPL Financial.
Tuesday, April 13, 2010
Will History Repeat Itself?
From Barron's the week before last:
Posted by Unknown at 11:30:00 AM