That's the flip side of this.
The fact that oil broke close to US$60 today caused a drop in S&P 500 energy stocks.
It gives you the sense that maybe this earnings cycle is going to be like the rest, where it starts out like it's going to be terrible and it ends up looking good, ... That's been the pattern for eight quarters.
Of the small handful of companies that have reported, the disappointments that came out were due largely because costs were higher, and here we've got oil, the No. 1 catalyst that caused that, jumping higher again.
On net this is not going to be a big event economically. People initially went to the big impact it was going to have, all predicated on the idea that oil was going to go a lot higher (than it has).
Earnings have been growing faster than stock prices. We've continued to have a cheaper and cheaper market.
Even at the open, we knew it was just going to be Libby, and if nothing else, at least the uncertainty is gone.
In the last few months, the consumer statistics, in aggregate, are better than anytime in the (recovery).
Consumers are stepping aside, and manufacturing and other business sectors are stepping in. The U.S. business sector is looking very healthy.
Copyright © 2024 Electric Goat Media. All Rights Reserved.