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Buzz on the Street: All News Is Good News for This Market

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A look back at the happenings on Wall Street this week, as seen by Minyanville's Buzz & Banter.

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All day and every day, some of the stock market's best and brightest traders and money managers share their ideas, insights, and analysis in real-time on Minyanville's Buzz & Banter.

Here is a small sampling of this week's activity in the Buzz.


Monday, November 11, 2013

Earnings Season -- How We Doing?
Michael Comeau


Factset just updated earnings season stats for the S&P 500 (INDEXSP:.INX), which again point to the idea of earnings needing to catch up to stocks.

Here are the highlights:

-446 of 500 companies have reported.
-73% have beaten on earnings vs. 4-year average of 52%.
-Companies are beating by 1.8% on average vs. 4-year average of 6.5%.
-52% have beaten on revenues vs. 4-year average of 59%.
-Earnings growth rate for Q3 is 3.4%.
-Revenue growth rate for Q3 is 2.9%.
-Strongest sectors are consumer discretionary, materials and information technology.
-Weakest sectors are energy and financials.
-For Q4, 85 companies have issued earnings guidance, with 73 (or 86%!) being negative. 5-year average is 63% negative.
-For Q4, analysts are forecasting earnings growth of 7.3%, down from 9.7% on September 30.

So we have weak revenues, small earnings beats, and terrible guidance.

It's actually pretty reminiscent of last quarter! Oh well, eventually this stuff's gonna matter... right?

Upside for Twitter
Jeffrey Cooper


This morning's Daily Market Report showed the following 10-minute Twitter (NASDAQ:TWTR) chart.

TWTR pionocchioed the bottom of its little channel and stabbed back above it in the first hour, so it may be viable on the long side for a trade.


Click to enlarge

All News Is Good News
Michael Gayed


Bullish Sentiment in US equities hit extreme levels last week, as reported by Investors Intelligence.

The spread between Bulls and Bears moved up to 39.6%, the highest level since April of 2011, which preceded a 20% correction in stocks. Looking at the reaction to Friday's payroll report, it is easy to understand why investors are so excited here.

While equities initially sold off on the news that payrolls beat expectations (presumably because this increases the odds of a taper), they quickly reversed higher and are now trading up close to 1%. In the last payroll report on October 22, when payrolls came in below expectations, equities also rallied higher.

For the time being, all news seems to be good news for US equities.

No positions in stocks mentioned.

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