Monday - July 13, 2009

Screenshot from http://finance.yahoo.com/

The markets had huge gains today after a series of selling in the past week. Financials were up. Investors acted on the comments by a bearish analyst Meredith Whitney who upgraded Goldman Sachs (GS)to "buy" and also said that Bank of America (BAC)has value. It is believed that financial has to recover first before everything else does. Therefore these positive comments are taken as good news about economy recovery and outlook. GS is reporting its earnings tomorrow. I don't thnk GS is moving any higher tomorrow. Investors has already acted ahead of earnings and priced in any positive news.
Railroad operator CSX (CSX) reported its second earning today. The company reported 20% drop in earning and 21% drop in shipping volume. Considering that oil has been down significantly since last year and the company has already done some other cost cutting, the earning was still down. However, the CEO said that there are some signs that they may be seeing the bottom in many markets.
It looks like that once again people are optimistic about the economy and the markets. I am not though.


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