Earnings Receive Muted Response

Friday, April 16, 2010

More positive earnings reports but the Street is so far has had a muted response. Google (GOOG) beat on top and bottom line but is trading down 5% pre-market. General Electric beat on the bottom line, missed on the top, is trading down a quarter of a percent. Bank of America (BAC) smoked estimates but has faded the initial move higher and is now down almost half a percent. This is hardly in-depth analysis but worthwhile to notice a seemingly altered reaction to these reports as the first week of earnings season ends today. The more subdued reactions in prices may signal a slowing of the upward momentum as earnings season rolls on but I am not reading too much into it.

Tokyo was down 1.52% last night. Oil is down about 2% pre-market and gold is down 1% as well. Seems like some slight changes in market complexion and we may see some selling. I am still long Nike (NKE) but sold out of Whole Foods (WFMI) and Las Vegas Sands (LVS) earlier this week. I was probably a bit premature on those sales and they had not reached my ultimate targets. Should we receive some downward pressure, I may look to re-enter these two.

The Securities and Exchange Commission is now considering putting tags on high frequency trades to track potentially manipulative trading tactics. Check out Themis Trading for a brief article and Senator Kaufman's response.

Disclosure: Long NKE.
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