Friday, October 23, 2009

Markets in limbo. UPDATE

The stock market still has not made its direction clear going forward. We are still in that narrow range that continues to butt up against the Resistance line of about 10,100. It is obvious that the data from 3Q companies which have reported earnings that it is a mixed bag. This morning MSFT reported and they exceeded earnings expectations. Analysts had expected $0.32/share and MSFT delivered $0.40/share in earnings. Their Revenue numbers were slightly better than last year but nevertheless must be recorded as better. at $12.93 Billion vs last year at $12.8 Billion. While not much of an increase it was still an increase of 1%.

While yesterday we saw a rise in all 3 indexes, the Dow volume was less than Wednesday's volume. In my comments yesterday I had said that the dollar was up in pre-market and that usually meant the market was going to go down. Well the dollar gain evaporated during the day and the dollar fell to a new low. In pre-market this morning the dollar is up again but only slightly and the Indexes are set for a gain at the open. We should see whether MSFT will drive the market higher. It should unless the Revenue gain of 1% wasn't enough of a motivator to buy stocks today. Of course they released their newest update of Windows yesterday and I haven't seen the consumer reviews on it. Hmmm, why would I, we own only Mac's. :)

I will be updating my charts over the weekend so come back and see what they look like in helping point the direction of the market going forward. Have a nice weekend too. Don't forget if you haven't voted in my Mini poll this month to add your opinion. Vote only once please in a month.

UPDATE: 8:30am PST

Burlington Northern Santa Fe railroad reported Quarterly freight revenues were $3.49 billion, which included a decrease in fuel surcharges of $725 million. This Compared to third-quarter 2008 freight revenues of $4.77 billion. You can see here is another company reporting lower Revenue than for the same period in 2008.

According to CNBC this morning, 60% of companies reporting 3Q results have shown higher revenues this period compared to 2008. The problem with that spin is that even if they reported only a $0.1 Million increase or less in revenue, it is counted in the 60% of companies with "higher" revenues. I am not impressed. Clearly the Burlington Northern Sante Fe railroad company, which does ship freight, is hurting and a better measure of the economy than many other companies.

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