Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Morning Thoughts


Economic Influence: University of Michigan consumer sentiment gets released at 9:45. Expectations are for a slight improvement to 91.0 vs. prior 89.7. Unlikely to be significant influence in market because we are in transition quarter from the perception the economy is improving to reality of whether it is or not. This number has been in line with moderate economic improvement.

Earnings Influence: MSFT increased revenue guidance which falls in line with a transition quarter for earnings as well. Each day a major company has reported something that would normally be a "key" driver. MSFT's positive today and IBM's negative yesterday reinforces the "good enough" scenario. This refers to earnings being good enough to cause buying on weakness, but not good enough to kick start another leg higher until the market is able to further consolidate the gains.

Market Related Influence: The market is in the corrective process. It is too early to suggest it is over, but the moderate actual fundamental improvement coupled with potential improvement as the economy expands should bring in support as the market pulls back.

The rotation that we have focused on (too soon) manifested itself yesterday as Consumer Staples clearly outperformed the higher beta sectors such as Technology. We expect this to continue for coming weeks as the market digests mixed earnings and economic results, while consolidating the past four month rally.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos