• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Limited Bang for Earnings Reporting Buck


From third quarter earnings reports, it appears as if we're seeing a tired market. However comparisons should look better in the fourth quarter, indicating that this pause in action is apt to be one that refreshes, as opposed to one that reverberates, as a strong sell signal.

Last week Intel provided the stock market with a nice boost after posting third quarter earnings and guidance that were much better than expected. Lately, though, it has become increasingly difficult to impress the market.

Since the Intel-related surge last Wednesday, the S&P 500 has slipped a point and is indicated to dip about 0.3% at the start of today's trading.

The flat-footed stance has been noteworthy given that the vast majority of reporters following Intel have surpassed consensus estimates, oftentimes with ease.

Freeport McMoRan (beat by $0.73), SanDisk (beat by $0.49), Wells Fargo (beat by $0.19), Eli Lilly (beat by $0.18), Morgan Stanley (beat by $0.11) and Northrop Grumman (beat by $0.11) are among the latest in a line of companies that have given the stock market ample reason to rally.

The market, however, looks as stirred up as Queen Elizabeth at a Rolling Stones concert.

To be sure, there hasn't been a lot of rocking and rolling in the wake of the earnings reports like there was during the second quarter reporting period.

The financial sector, in fact, has been underperforming the market, declining 0.4% since the close on Oct. 9 versus a 1.8% gain for the S&P 500. A lack of participation from that key sector has not gone unnoticed.

Basically, it appears as if we're seeing a tired market. With the reports coming in like they are, though, and the realization that comparisons should look even better in the fourth quarter, this pause in the action is apt to be one that refreshes as opposed to one that reverberates as a strong sell signal.

We could back up a bit more from here given the heightened bullish sentiment (a contrarian indicator) entering the week and due to the nervousness of weak-handed longs who were expecting more bang for the earnings reporting buck.

Still, we suspect there remains a healthy base of potential investors looking to buy on weakness, which should continue to keep pullbacks short and/or shallow in the near-term.

This material presented here has been obtained or derived from sources believed to be accurate, but we do not guarantee its accuracy and it may possibly be incomplete and condensed. The opinions expressed are based upon our study and interpretation of available data. This is not a prospectus; no effort on our part with respect to sale or purchase of any securities is intended or implied. Any stock noted herein is not, and should not be construed as a recommendation or rating to buy or sell any security. Such stocks are intended for illustrative purposes only. It is possible that at this date or some subsequent date the officers, directors and/or shareholders of Sierra Capital Investors, Inc and its affiliates may own securities or buy or sell securities mentioned herein or those not so mentioned.

Related Videos
Victor J. Dzau, MD, gives expert advice
Victor J. Dzau, MD, gives expert advice