Investors Not Impressed With Solid Earnings
My opening post is a little late this morning, as I have been on the Goldman Sachs (GS) conference call. Let me just say that I think that this stock is being tainted by the group, and that it is not being rewarded for its relative outperformance.
Goldman beat earnings estimate for the 8th straight quarter, and was the only firm to have a profitable mortgage business in 2007. The Street continually underestimates the firm's earning power, and with the stock at $200, I would be more inclined to buy at current levels than sell.
Best Buy (BBY) also beat earnings estimates nicely, but that stock is down also. This market just doesn't have the feel of investors who are willing to step up here. But as investor angst remains elevated, this condition could change at any time.
Asian markets were mixed overnight. Oil was up this morning, which was helping the energy complex and the overall market, but it is reversing lower as I type this.
Bond yields are lower again, with the 10-year yield at 4.10%. The put/call ratio opened at 1.36 this morning, an elevated level. And the Yen and the volatility index are both lower this morning, which has usually correlated with stocks being up. So maybe the market can have a good day today. Engine room-- more steam!