Employment data cheer bulls in broad rally - PeopleSoft, Intel take center stage

CBS.MarketWatch ^ | June 6, 2003 | Steve Gelsi, CBS.MarketWatch.com

[Ernest_at_the_Beach]

Looking good for the 2004 reelection of President Bush!

[Ernest_at_the_Beach]

Need a Bullish headline in the breaking news column!

[ambrose]

this is old news. market did a full reversal and is down now. will probably be down on Monday. hopefully you've got some cash ready for dip buying.,

[ST.LOUIE1]

BUMP!

Excellent post, Ernest!

[MonroeDNA]

WE'RE ALL GONNA DIE!!!!!

[MonroeDNA]

Thanks for the post, Earnest!

[Grampa Dave]

Well the Germany economy ain't bullish. In fact it is about as bad as it has been since 1945!

http://www.freerepublic.com/focus/f-news/924391/posts

German financial crisis 'worst since 1945'
Financial Times ^ | June 06 2003 | Hugh Williamson


Posted on 06/06/2003 9:41 AM PDT by knighthawk


Germany is in danger of breaching the European Union's budget deficit rules next year because of the country's "worst financial crisis since 1945", finance ministers from Germany's 16 federal states said yesterday.

The warning reflected heightened concern over the country's severe financial problems, following indications by Chancellor Gerhard Schröder on Wednesday that Germany might overshoot the 3 per cent budget deficit limit, for the third consecutive year, in 2004.

[LS]

Hey, all of Europe sucks. That's socialism for you.

[Orangedog]

Let's hope that this latest bubble doesn't burst befor the election, because earnings of a lot of these companies can't support these share prices:

Intel has a P/E of 47
Oracle P/E 34
Disney P/E 41

3M looks a lot better that those with a P/E of 24 and Johnson & Johnson's P/E at 21, but even those are little on the higher side for what is typical if the street is going to try and claim once again that the bear market is over.

[CPT Clay]

Daschele is deeply saddened.

[Steven W.]

those are trailing earnings, of course, coming out of depressed economic + market conditions, it's a classic replay of every economic downturn that has ever occurred in the history of the US economy. For example, INTC will likely earn $1 per share next year so it's currently trading around 20 times forward earnings. However, with significant cost-cutting and productivity measures already under the belt, future increases in revenues for good companies will go directly to the bottom line and profits will rebound significantly, as they always do & always have, throughout history, following a downturn of these sorts. That said, one can justify paying 20 times trailing earnings for a company of the quality of JNJ, a company whose prospects are so great it was just downgraded because demand for their new drug coated stents is so high analysts are afraid they can't meet the demand and their only real competitor was just forced to pay JNJ $500 million for violating their province (not to mention a company which has significantly increased dividends year after year for a long time and likely promises to continue more of the same in light of the new tax incentives). So one has to put all these kinds of things in perspective.

[Steven W.]

S&P 1000 & DOW 9200 were always considered points of resistance so it's not surprising that the market saw some folks engage in profit taking & for the bears to increase their shorts in a futile attempt to try and minimize their regularly increasing losses. As for your comments on a "full reversal", I'm not seeing it & my t/a tells me the upward trend was maintained and the persistent backing & filling we're once again seeing, just like at resistance faced around DOW 9000, will be shortlived, though these kinds of pullbacks are certainly healthy & desirable.

[wardaddy]

A forward 20s P/E in such a low interest rates environment looks fine to me.

[wardaddy]

Another nice post Steven!

Volume has picked up as of late across the boards...a good sign in an up market...this is not light buying with no sellers this time.

The 50/200 MAs are trying to make the turn...the 50 is already headed north and the 200 is slowly making a left turn too.

I see foundation building here baring a terrorist attack. We will have a pullback...at some time soon. I'd venture we've still got another 100-300 DOW points before we take a hard hit.

I'm going on record here: This is not a bear rally...at least not like the run-ups we have seen since 9-11 in my view.

Again, for a simpleton like me...I'm watching the volume...the momentum.

[Ernest_at_the_Beach]

Love it!

[SierraWasp]

"Hey, all of Europe sucks. That's socialism for you."

Ah yes... The Franco Germanic you'reopeein axis of socialist punk weasals!!!

You da MAN!!! (ha ha ha!!!)

Thanks Ernesto!!!

[SierraWasp]

2:17PM Dow again in triple-digit advance by Julie Rannazzisi

The Dow Industrials ($INDU) again posted triple-digit gains, swelling 104 points, or 1.2 percent, to 9,145 after rising as much as 174 points at its intraday peak. The blue-chip index's best performers included McDonald's, which climbed almost 10 percent, Intel, Boeing and Alcoa. The Nasdaq Composite ($COMPQ) also resumed its upward trajectory, putting on 7 points to 1,653 after a brief stint in the minus column.

Take that, ambrose!!!

[NeoCaveman]

Daschele is deeply saddened.

Forget deeply saddend, he's going to need to be put on suicide watch.

[Ernest_at_the_Beach]

Yahooo!

[Straight Vermonter]

IBM is a bargain at P/E of 26. They will have a hot new server coming out this fall that will kick a$$.