Almost everyone is exceeding estimates with a few minor misses. Most are even topping last years same quarter numbers. Google just came in at 10.13 vs an estimated 8.23. Apple is the only major player left to report.
Couple minor medical players that missed (Gilead appears biggest that was a bit surprising 1.11 vs 1.45 expected) and a few fast food types which was to be expected. Overall I’d say things have gone well.
Overall I don’t see a reason for the market not to head up unless it’s just that everyone already priced it in. NASDAQ has been screaming already so wouldn’t be surprised of some profit taking. Except it is July and most of the trade volume has been lower.
I just don’t think the DS expected the economy to be as resilient as it has been or for the administration to be as aggressive and solid with it’s response.
One thing that might cause some concern is the new stimulus thing dragging out. I’m not a fan of it but the market has already priced it in so if it doesn’t end up passing I expect the market to drop about roughly 5%.
I’m not an economist or a professional investor but with enough makeup and a stay at a Holiday Inn I could play one on TV ;-)
And Apple just posted a 2.58 vs expected 2.07 compared to last year at 2.18.
Amazon looks like a huge surprise though 10.3 vs expected 1.62 compared to last year a 5.22. Ridiculous number.
My view is that stocks and gold will both continue to rise because the values of ALL currencies are falling, more-or-less together, as the money powers attempt to prevent economic collapse due to cessation of economic activity (similar to 2008-2009 but MUCH MORE SERIOUS).
In other words, in our present economic environment, cash is trash. (Meaning: If you hold onto it it will simply waste away in value.)
We don’t see price inflation in most of the things we buy because of the reduced demand in many key areas; so sellers are not able to raise their prices.
In the Weimar Republic (post-WWI Germany) cash became worthless but the holders of land and also industrial assets (e.g., factories) did just fine.
In today’s America, the equivalent of land and factories would be owning stocks.
Another reason for the rise in stock prices is that with the incredibly low interest rates, there is no money to be made in bonds.
We are in an odd time when inflationary forces and deflationary forces are both blowing strong.
One wouldn’t want to get caught pissing into the wind.