(As of 7:05 am pacific)
While markets appear to be
quiet at the opening this morning, nothing could be further from the
truth. There has been a dramatic
reversal overnight from negativity generated by big misses in both Apple and
Amazon earnings after the market closed yesterday. While it appeared that we would be looking at
1% plus losses this morning, a couple of things happened along the way. The first is that US GDP came in slightly
above expectations at 2% growth. While
this is nothing to write home about, it is more of a relief to investors that
it was not worse. The second is that
investors chose to ignore the current earnings miss and look into the future of
the two huge companies, Amazon and Apple, giving them a 'free pass' on this one
occasion. Bad news had already been
priced into both stocks and future projections look pretty rosy. One can't help but think that this is a
continuation of a fairly weak earnings season and that we will see continued
deterioration of stock prices as the day progresses with stocks finishing
negative to end the week.
