(As of 7:20 am pacific)
In a quiet day of trading
there is little news of import today.
The Treasury market is closed because of Columbus Day and I suspect that
many traders are taking the day off. Over
the weekend there have been many stories about how weak the earnings season
will be for the third quarter. That
concern is driving markets lower today though the retreat has been
moderate. From projections and analyst’s
comments, earnings growth might actually decline for the first time in
years. What will further define market
direction for the near term will be the growth projections that companies put
out there for the 4th quarter, which is currently expected to be a
return to robust profit growth. If
future forecasts are reduced along with current earnings declines, it could
make our October rally a distant memory.
Gold and oil are down today as the dollar is strengthening. Interest rates continue to run at historic
lows.
