Champagne

With 85% reporting companies beating consensus, skeptical as I am it , I think that relates more to low expectations than companies outperforming. Nice graphs and data by Bespoke Investment Group: EPS Beat Rate at 85%. Similar thing with company guidence. Also Bespoke Investment Group: Guidance — Wow. It’s my impression that we have bubbles forming in many market segments, but no catalyst to reverse the process. Given the many times stated will by major central bankers to extend low interest rate environment the price disruptions could continue for some time and propel the market to even higher levels.

Most important earnings announcement this week for me is the Wells Fargo on wednesday. They will probably beat the consensus earnings; I have little doubt on that; but the default rates and provisions could shed some light on the future.

Today, Asia except Nikkei ended higher; Europe is trading higher U.S. equity futures suggest marginally higher opening.

This entry was posted on Monday, October 19th, 2009 at 7:27 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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