A couple of industrial giants, Caterpillar and Boeing both had “difficult” earnings reports. Amazingly, the shares of both companies ended higher for the day. Once again, as we always say, the actual report is less important than the perception and expectations going into the report. In other words, was the bad news already priced into the shares of the companies reporting? In the case of these two Dow components, the bad news, at least for today, was priced into the shares.
As for the markets, it was a day where the averages spent time both in positive and negative territory. By the close, the Dow Jones Industrial Average was up 45 points to finish the day at 26,833. The S&P 500 was up 8 point to close at 3,004. Gold was up $7 to trade at $1,494 per ounce, while oil was up $1.33 to trade at $55.81 per barrel WTI.
It has definitely been a mixed earnings season so far, not as bad as pessimist predicted, but not as good as optimist hoped. All in all, though, the market averages are hanging tough, frustrating the bears and giving some hope to the bulls that a lot of the pessimism permeating the street is already priced in-or not. We’ll keep monitoring these corporate earnings releases.
Have a nice evening everyone, and let’s even it up tonight Astros.