Okay, da bears are back. Da bears ….
Fine! Let them play for a bit. They have a right, I guess. Earnings are mixed, the economic data is mixed, and, well, let me see, hmmm … Oh yeh, Jack Lew tells us the government will run out of money at the end of February. Is that all? Is there anything more that would push the market down so hard?
Nothing is new under the sun. Earnings are always mixed and because we obsess about economic data month in and month out, it is always mixed as well. As far as the government running out of money … Don’t forget it is an election year and the politicos need to show their constituents how responsible they are.
- Norfolk Southern Corp., the second-largest U.S. eastern railroad, is among businesses benefiting from the pickup in demand. The Norfolk, Virginia-based company this week reported fourth-quarter profit that exceeded analysts’ estimates as it hauled more chemicals, automobiles and agricultural products.
- Eurozone composite output PMI has climbed to a 31-month high of 53.2 in January from 52.1 in December and surpassed forecasts of 52.4, with the manufacturing and services sectors improving nicely.
- Nearly every U.S. city’s economy is projected to grow this year, including areas that struggled to rebound from the recession, according to data released this week by the U.S. Conference of Mayors. All but seven of 363 metropolitan areas will see economic gains, said the report prepared by IHS Global Insight, an economic analysis company. That would mark a shift from 2013, when about one-fourth contracted.
Yet, we have a large railroad company profitably hauling freight, which means it is moving goods and parts for goods. We see Europe slowly climbing out of its deep economic hole. We hear the vast majority of urban areas in the US are doing way better economically than they did in 2013. All that somewhat offbeat reality is here to savor, but the market could care less. It is worried about other things, I guess.
The truth is, though, I didn’t expect such a hard drop today. I saw nothing in the cards that would suggest it, other than the talking heads have been pushing the downside. Well, this is the market, after all. In such a lackluster environment, a top heavy market with no bodda-bing-bodda-boom catalyst, the market will seek balance.
And so it goes … I hope you all kept some powder dry because the bulls will return soon enough to claim their right to play. And their right is so much more than the bears.
Trade in the day; Invest in your life …
