Boring Market

Investors this week breathed a sigh of relief due to better then expected earnings from several companies who released their numbers.

Google proved that a looming recession had no effect on their numbers as they increased profit by 30% sending its stock price up $90 in one day while skeptics bought back into the company. These first quarter results are only the tip of the iceberg and a strong indicator a better year long outlook.

IBM reported a 26% rise in its first-quarter earnings and raised its profit forecast for the rest of the year. This shows that there is no weakness is the software and service sector and that our current economic downturn is not affecting IBM.

Citigroup was not so immune to our looming recession and posted a $5.11 billion quarterly loss, also stating they are going to cut 9,000 jobs. The remarkable thing is the stock price soared nearly five percent, because the loss was foreseeable and was better then excepted. Some even suggest ‘that even if the worst of the credit market volatility is over’.

Many individuals say these earnings results ‘helped ease investor anxiety about the health of corporate profits’ and I agree. The Dow and Nasdaq had their best week in months and with earnings season just beginning we could be some bright spots in the weak economy. I’m personally looking forward to Apple Inc. earnings call next week. I feel they will blow earnings out the water and the speculated 3G iPhone will finally have a launch date.

Tags: 3G·Apple·Citigroup·Earnings·Economy·Google·IBM