One reason the market has given up it's gains this year is the action of its generals. My count says we've had 14 Dow stocks report. All but three have been miserable. UTX is up two points on good earnings and AXP is slightly higher than when it reported. PFE loss was less than expected so it is trading higher. AA Alcoa's reported a fall of 16% in net income on higher energy costs. DD warned of a 200 mil revenue shortfall and issued very weak guidance. Big daddy INTC missed earnings badly and got clobbered. IBM earnings were OK but revenue was light and it is now trading lower. JPM had trading revenue disappoint and it has rolled over. GE was not impressive and its stock has traded consistently lower since reporting. C missed earnings by 2 cents and trading lower. MMM issued weak guidance and is down over a point. JNJ was light on sales, trading lower. MCD don't get me started, said their earnings were great but if you deduct one time factors from the comparisons, I think they were weak. MCD is up 1/4.
The good news is that most of the bad news should be out of the way for the remaining 16. Earnings for the rest should not be so lopsided. CAT, BA, HON should be good. As always forward guidance will be key. Good luck trading.
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