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| 2010-02-02 02:12 |
HOPES IN THE ASHES
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For the last few weeks I've talked about the market being anxious, and it is at the moment. However, the last couple of sessions have
proven anxiety works two ways. When the market is drifting it morphs into a fear that the bottom could be falling out or it morphs into fear of
missing a rally. In both instances, there isn't much volume, pointing to another truth about anxiety...that it keeps most investors in neutral gear.
The good news is that economic data is better this week, so far, than it was last week. Today's session is all about the two most desperate areas of
our economy; the housing market and the job market.
Housing
The sector saw strong earnings results from DR Horton (DHI) and a Pending Home
Sales reading that put the brakes on the freefall. DR Horton earned $192.0 million versus losing more than $600 million in the year ago period. Part
of the profits came from a tax deal, but revenues were up 36%, and new orders soared by 45%. Coupled with a solid gain in Pending Home Sales, where
month over month gains in the Northeast, Midwest, and South offset the three consecutive declines in Pending Home Sales in the West (which could be a
good thing), the picture improved.
Then there is the jobs market. Yesterday's ISM Manufacturing
report showed a healthy gain in manufacturing jobs, and this morning's earnings results from Manpower (MAN) gave hope that Friday's employment results
will be the start of something positive and sustainable. The company posted earnings results of $0.37 per share on $4.41 billion in revenue versus
consensus of $0.24 per share and revenue of $4.16 billion. In addition to solid earnings, the company made a $430 million acquisition. Management made
several upbeat observations and comments including: "evidence of improving trends in nearly all geograp
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Disclaimer: Securities Operations Forum is providing this research to assist investors in determining when to buy and when to sell. All investment decisions are yours and as a result you could make or lose money. Securities Operations Forum, its employees and/or its affiliates and family members may from time to time take positions in the open market or otherwise with respect to the securities discussed, but not have stock ownership equal to or greater than 1% of the outstanding stock of the covered company nor does any employee of Securities Operations Forum sit on the Board of Directors of any covered company. The statements made herein include information obtained from sources believed to be reliable, but no independent verification has been made and we do not guarantee its accuracy or completeness. The statements made herein contain general information and do not constitute an offer to buy or sell any security. |
