As earnings reports continue to come in this week, beating most analysts’ expectations, the DOW is quickly approaching that critical 10,000 mark. It is currently at 9980.10, just 20 points short of that magic number.
JP Morgan blew out earnings this morning, Intel beat expectations yesterday, retail sales showed a half point increase (less autos) over last quarter.
Nevertheless, there are vast sums of money on the sidelines as naysayers do not believe the recession is truly over. If and when that sideline money moves into the markets, who knows where DOW will be a month from now. Is the recession really over, as the National Association of Business Executives reported earlier this week?
The upside to DOW 10,000 is that it improves consumer confidence. The preliminary report on the Reuters/University of Michigan Consumer Confidence Index will be reported Friday morning.
The bulls and bears are still battling over whether or not there are more shoes to drop on today’s celebration. Retailers are still watching for key holiday sales, unemployment numbers are beyond dismal, and of course, everyone is watching the fragile housing market, and the expected surge of expected foreclosures.
Stay tuned, earnings season isn’t over yet. But what does next week bring?
Written by Shelby Bateson
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