Thursday, December 21, 2006

Soft GDP Report: A Trend or Anomoly?

The market is trading slightly higher in early trading. Q3 GDP was revised slightly lower, to 2.0% from 2.2%, but it doesn't seem to be too worrisome. The question is whether this marks the low for economic growth, and whether we see a pickup from here.

Oil is also trading lower ($63.30), while the yield on the 10-year is steady at 4.59%.

The bears in the AAII sentiment survey outnumbered bulls again this week, making it 4 out of 5 weeks we have seen that. This is a remarkable showing of bearishness considering the DJIA is making all-time highs and the SPX is making new yearly highs each week as well.

In other news and notes:
  • MNST says no significant shift in online job demand
  • NKE reports solid earnings
  • BBBY offer conservative guidance; stock lower
  • VPRT profiled in IBD's New America
  • GIS reports earnings, raises guidance
  • TWP expects another strong quarter from RACK
  • RBC raises estimates on MSFT
  • PMCS lowers guidance; stock lower
  • GILD estimates raised at RBC
  • IAAC gets crushed after reporting soft quarter
  • Iran seeks oil payments in currencies other than the dollar



At 8:02 AM, Blogger Never-Limp said...

I'm loving this bearish sentiment!


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