Wednesday’s last hour fade away sets the stage for further stock price weakness.
The ominous specters of inflation, higher energy prices, and ever rising interest rates should weigh on stocks.
Better than expected earnings reports are old news by this time. Better than expected earnings are EXPECTED. Wall Street analysts low ball earnings estimates in order to give stocks a boost. The game is old hat, and the earnings trick is not working beyond a few minutes immediately after the report. After knee jerk dummies react, the rally is over. Wednesday’s pop in Morgan Stanly after the blowout earnings news lasted only 35 minutes.
