Friday, January 29, 2010

1/29/10 Midday Report: Size doesn't matter as 6% GDP expansion fails to stimulate the market

The market is bouncing around today even though GDP grew 5.7%, the fastest pace in 6 years and beat estimates of 4.7% growth.  The upside was led by a restocking of inventories from their depressed levels (and inventories were more depressed than Kathy Griffin's bikini waxer the time she ran out of rubber gloves).  The change in inventories accounted for 3.4% of the growth with purchases of equipment and software up 13%, negating the 15% drop in commercial construction because building cardboard boxes is so much cheaper than actual homes.  So the question becomes is this a one quarter inventory rebuilding and stimulus induced anomaly or are we really on the way to a recovery?  In the delightful Elisabeth Kubler-Ross's model on the stages of grief (and for those who missed Ms. Kubler-Ross's induction into the National Women's Hall of Fame in 2007, the finger sandwiches were to die for), the economy has passed steps one and two by moving past denial (we are definitely fucked) and anger (openly calling for Dick Fuld to have his dick folded) and is now in the bargaining stage (please hire me, please, please).  Unfortunatley the next stage is depression, which hopefully isn't caused by another market crash when inventories fail to turn and/or by China's bubble bursting like Christina Hendricks' bustier.  Of course the last stage is acceptance and with any luck we will be accepting growth and recovery and not the realization that we are Japan circa 1989 or Taylor Rain's lovely backside in her brilliant performance in 2004's much overlooked film, Apprentass.


What is most concerning to Money McBags is that the market has been selling good news and is trading down now that the expected results are coming in much better.  Of the 195 companies in the S&P 500 that have reported earnings since Jan. 11, 154 have beaten analysts’ estimates, according to Bloomberg data.  That is an amazing stat and yet the market rally seems to have fizzled out like Lindsay Lohan's singing career (and acting career, and pretty much anything other than her whoring career, which actually makes us all winners).

The other big news of the day is that Ben Bernanke was confirmed by the Senate for another 4 year term by a 70 to 30 vote.  The thirty who voted against him also voted for Mountain Dew in the Pepsi challenge, Curly Joe as their favorite of the 3 Stooges, and Anna Karenina as their favorite Tolstoy novel.  Money McBags is a Bernanke supporter and thinks he has done a perfectly reasonable job as Fed Chairman, so kudos and huzzah for the Senate who took a wide stance and voted bi-partisanly on this one.


In stock news, MSFT earnings were up 60% thanks to Windows 7 and a little something they refer to as a "monopoly."  They beat estimates by $.15 by earning $.74 per share and promised that with earnings like this Bill Gates may finally be able to move out of his mother's basement.  Amazon also put up a huge quarter with sales rising 43% and earnings coming in at a robust $.85 per share, well ahead of the $.72 estimates.  They also announced a $2B share buyback which boggles the mind considering that they are trading at 50x next year's earnings and with the iPad coming in to the market and potentially taking share away from the Kindle.  Why a commodity business with low barriers to entry should trade at 50x is beyond me, but then again, so is M-theory and all of it's absurdly thought out 11 dimensions.

In small cap news MED and ZAGG continue to trade down while EBIX gives back some of their gains from yesterday.  CRUS is also down despite their better than street guidance yesterday and run of analyst upgrades today.  Money McBags did dip his toe into the CRUS waters yesterday (and it was delightfully stripper piss warm) and buy a small position so go buy some iPhones.  Next week promises to be a wild week in the small cap space with more earnings announcements than Jack Nicholson has chins, so enjoy your weekend and be prepared.

7 comments:

Anonymous said...

I am glad to be a visitor of this unadulterated web site! , thankyou for this rare information! .

Anonymous said...

Pollution can definitely be linked to uncontrolled asthma buy lumigan uk Different batches of Active Manuka Honey have different UMF ratings
The Meniere's Disease - This disease of the ears, is yet again what can cause ringing ears, amongst other things like vertigo and hearing loss in general generic cymbalta Of 18 million Americans affected by some form of depression, 9.2 million clinical depression.
The creams and lotions sold in tanning salons have chemicals that speed up the tanning process Viagra for women This mixture, if used for gargling 3 to 4 times a day, will cure mouth ulcers in no time
Then there's the rub that a quantity of teeth whitening products you can find in the marketplace iressa receptionist work done at a spa, medical knowledge, or hospitality experience) If you lack professional experience, focus more on your knowledge of the modalities taught in your program
squidoo No Prior Script Galantamine no prescription "The current vaccine against the seasonal influenza strain H1N1 is highly unlikely to provide protection against this variant," says homeopath Dr

Anonymous said...

The virus can get into the throat, the bronchial tubes in the lungs and chest, infect the nose and sinus cavities, and even get into the middle ear lumigan uk There is an old documentary movie about the fear of public speaking
If you scan the market for products that can help you get rid of neck lines, you will find hundreds of them buy cymbalta cost We all feel down from time to time, but symptoms of depression should be taken seriously if they last for more than two weeks
If you get colds easily, the beginning of the cold treatment should be very soft buy Viagra for women Women really take their time and effort just to make sure that they look fabulous! Knowing this, stretch marks will always be a threat to a lot of women
Anxiety disorders now appear at younger ages cheap iressa Release the blockage and away goes your immune system again
It has a quick start feature and manual one that keeps you on your toes How to buy Cystone This happens usually through obesity, strain in bowel movement, sitting for long periods of time, labor and pregnancy

Anonymous said...

Adult сервис [url=/tags/%F0%FF%E4%EE%EC/]відео порнуха онлайн бесплатно без смс тварини[/url] Здесь [url=http://aftertube.net.ua/tags/%EE%ED%EB%E0%E9%ED/]онлайн[/url]
не для сопляков

Anonymous said...

These certified criterions encourage the borrower to discover the amount without delay! Payday cash loans UK can be had rather people without the demand of assets since collateral instead of the cash. Basically, you will provide the finance company a post-dated pay attention to to get to your career or college or physician's office. click here At that time, I used to be working for a memory foam surgeon.

Anonymous said...

When it comes to paying your cash move forward, you know with regard to home mortgage loans funding and more fees due to rising cost of every day items? The group approach enables you to answer numerous types of customer problems and concerns. Even though of these possibilities will need to be repaid very quickly encourage other problems. instant payday loans You can always speak to the Admin if with any level you have any issue in the installation of the program on your web host!

Elawtalk.com said...

visit : Elawtalk.com