Again, another day and we have another day of normalcy in the market. Funny, but after some 10 years of watching the market day in and day out, I just now, just today, realize what an effect its movements have on me. Okay, so I didn’t just realize that, but today it became apparent to me again.
Me thinks this is a good awareness for traders to have – the market can and does affect our moods, even if we pledge, swear, or loudly proclaim that we are emotionally detached, objective, and otherwise stoic when it comes to the market.
- About 74 percent of those that have posted results this season beat analysts’ profit estimates, data compiled by Bloomberg show.
The fact that earnings are coming in above norms is part of the reason I feel good. As you know, if you have been reading me for a while, I believe that, ultimately, earnings are the prime driver for the market (not an original thought, grant you). True, geopolitical news, politics, technical analysis, economic troubles can and do drive the market, and sometimes one or more can crash the market (think 2008 financial collapse), or, simply cause a major correction (think 2011 US default fight), but, in the end, long-term movement forward only happens when publically held corporations are making money.
Switching tracks slightly, often earnings for specific companies falter, and they pay a price, just as the market does when overall earnings falter, but, as traders, this is the time we should begin focusing on the company, especially if it carries the distinguished history of a company such as Nokia.
- Nokia’s intellectual property includes more than 30,000 patents, including many fundamental to wireless communications—as well as others in materials, nanoscience, and software. With the devices division gone, the Advanced Technologies business will cut licensing deals and perform advanced R&D with partners, with around 600 people around the globe, mainly in Silicon Valley and Finland.
You can bet Nokia is now on my radar. It will be interesting to both watch and trade as it morphs into a new entity, a money-making entity I believe.
- When it makes the payment next month, Freddie Mac will have paid about $81.8 billion in dividends, more than the $71.3 billion it received from the Treasury when it was bailed out during the financial crisis.
Seeing the US investment in in our financial system pay off also makes me feel good. It was the right thing to do then and the reality of its success speaks to what government can and should do to protect our way of life, our economy.
- Spain’s economy grew between October and December as domestic demand and investments improved, data showed, adding to signs that its recovery from recession is slowly gaining traction.
- Italy’s 10-year yield fell to the lowest level since 2006.
More feel good stuff. The reality of Europe, specifically Spain and Italy, coming out of its financial danger zone makes me feel good as well.
- While home prices continue to recover, tight inventories, rigid lending standards and freezing temperatures in many parts of the U.S. are contributing to a drop in sales. (ETSLTOTL) Applications for home-purchase loans fell 3.5 percent last week to the lowest level since August 1995, according to a Mortgage Bankers Association index released yesterday.
Believe it or not, the above makes me feel good too. The US housing market is in recovery, no doubt, but it was beginning to act out a bit from the steroids given it to help it recover. It is time the housing market came back to a supply and demand reality. Higher mortgage rates and over building driving a larger inventory are good things in the long term.
Finally, something more fun than practical, in terms of the market. I see no use for this, but since I grew up in a time when the “spy thing” was ubiquitous and popular, I find the following amusing.
- Boeing has unveiled an Android-based secure smartphone for defense and security customers that, in shades of “Mission Impossible,” will effectively self-destruct if anybody tries to tamper with it – attempts to open the casing will result in the deletion of all data and will make the device inoperable.
Have a good day. I am …
Trade in the day; Invest in your life …
