Is the earnings rally starting to lose steam? Big surprises are moving stocks less
07/21/2009 5:36 pm EST
I don't think we've reached that last stage yet. But I can see the middle stage starting to unfold.
On July 21 Freeport McMoRan Copper & Gold (FCX) announced a huge surprise. Instead of earning 69 cents a share, the company earned $1.38. And the stock climbed by just a little more than 2%.
Great news can still move a stock big. Witness the almost 8% gain in shares of Caterpillar after that company beat expectations by 50 cents a share.
But watch for signs of a slide in the coming days. Today after the close investors got earnings reports from Apple (AAPL) and Yahoo! (YHOO). Tomorrow brings Morgan Stanley (MS), Wells Frago (WFC), Qualcomm (QCOM), and Steel Dynamics (STLD). Watch to see how much of a surprise it takes to move a stock after those reports.
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