Earnings rock ... so far

Earnings rock ... so far The market is celebrating a strong start for earnings. But with many big firms yet to report, it's probably too soon to get excited. By Paul R. La Monica, CNNMoney.com editor at large October 12 2006: 2:19 PM EDT

NEW YORK (CNNMoney.com) -- Bust out the bubbly and party favors. Happy days are here again on Wall Street ... at least for now. But some market experts think investors shouldn't get too optimistic.

First, the good news. The Dow hit a new record trading high Thursday and the S&P and Nasdaq are at their highest levels in about five years. Oil prices are retreating and the economy, while showing some signs of slowing, still appears to be in relatively healthy shape. dow1012.mkw.gif The Dow is at an all-time high and is flirting with 12,000 thanks to optimism about corporate earnings... sp500nasdaq1012.mkw.gif ...while the S&P 500 and Nasdaq are trading at multi-year highs. INVESTOR RESEARCH CENTER HOT STOCKS

And perhaps the best news for investors is that so far, third-quarter earnings season is off to a good start. Consumers holding up well

PepsiCo (Charts) reported better than expected earnings Thursday while McDonald's (Charts) raised guidance. Retailer Costco (Charts) also reported a positive earnings surprise Thursday. And earlier this week, companies ranging from Indian outsourcing firm Infosys to software maker Parametric Technology boosted their financial forecasts.

"So far the numbers have been good, there's no doubt about it," said John Butters, research analyst with Thomson Financial.

Financial services firms also have done a bit better than expected, with investment banks Goldman Sachs, Lehman Brothers and Bear Stearns all reporting last month that their profits that beat forecasts.

Earnings look goods so far. DJIA up 86 points at 1154 Pacific Time.

1 posted on 10/12/2006 11:54:39 AM PDT by Signalman

Just when I converted all my holdings to a BAHOG!

2 posted on 10/12/2006 11:57:06 AM PDT by Tijeras_Slim (Dancing through life like a street mime with tourettes syndrome.)

Earnings rock ... so far

...just had my senior moment..thought the headline read "earrings rock"...boy was I lost

Doogle

3 posted on 10/12/2006 11:57:44 AM PDT by Doogle (USAF 69-73...."never store a threat you should have eliminated")

"But some market experts think investors shouldn't get too optimistic."

Must...talk down...economy. Democrats...must win...election.

6 posted on 10/12/2006 12:01:46 PM PDT by ConservativeMajority (Dems denounce Foley, but do they denounce NAMBLA?)

and the economy, while showing some signs of slowing, still appears to be in relatively healthy shape.

Ughh...

7 posted on 10/12/2006 12:02:08 PM PDT by frogjerk (REUTERS: We give smoke and mirrors a bad name)

This is absolutely killing them that this is happening under BUSH.

8 posted on 10/12/2006 12:03:34 PM PDT by frogjerk (REUTERS: We give smoke and mirrors a bad name)

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