Monthly Archives: July 2013

Corporate Earnings Remain Solid 7/26/13

The second quarter earnings reporting season is well under way. The next two weeks in particular will feature a heavy dose of results and earnings guidance for the remainder of the year. Coming into the reporting season, we have been looking for year-over-year percentage earnings growth to be in the 4-5% range.  So far, through last Friday, with 21% of companies in the S&P 500 reporting, earnings are up 8.1% on a purely market cap weighted basis. Continue reading

Market Commentary 7-19-13

Investors shifted their focus this week from comments made by the Federal Reserve members to corporate earnings as several companies reported earnings this week.  The earnings were generally favorable, helping the S&P 500 close higher 4 of the 5 days this week.  Below is a quick recap of some of the earnings announcements that took place this week: Continue reading

July 12, 2013 update

This week’s major market-moving event was Fed Chairman Ben Bernanke’s speech on Wednesday to the National Bureau of Economic Research.  He made it unequivocally clear that no “tapering” of the central bank’s bond buying program from the current $85-billion-a-month pace is likely to occur soon.  Continue reading

The Investment Implications of QE Tapering – 6/28/13

The Federal Reserve’s current quantitative easing (QE) program that started in 2008 has been the most extreme monetary stimulus that it has ever applied to the U.S. economy. In an effort to provide the markets advanced warning of any future changes, Federal Reserve Chairman Ben Bernanke recently began discussing that the Fed could begin to taper QE; that is, reduce its pace of asset purchases, possibly as early as later this year.  The bond market immediately went into a tailspin as the reality of rates moving higher over time set in. Continue reading