Here’s Briefing.com’s (From In Play) take on what’s going on this morning (emphasis is mine):
08:33 ET Floor Talk
Nasdaq futures sharply lower and European equities under pressure as NOK, IBM, QLGC and SAP disappoint investors with either lackluster quarters or overall results that failed to meet very high investor expectations. Given magnitude of market gains going into earnings season, no surprise that investors/traders are selling-the-news on the actual reports. After all, many desks and individual traders have posted their best numbers in years in just the first half of 2003. Yesterday, saw many of the momentum names rollover as profits were locked in (particularly in the hot generic drug group). And, as predicted going into the earnings season, seeing many analysts lock in gains on their research calls by downgrading stocks following the earnings report… Looking forward, expect savvy money to be looking for pullbacks to 50-day and 200-day moving averages before stepping up to the plate in many of the hot names — while not so savvy money rides the wave down. Most of the best stories in this market are now trading at significant premiums to their growth rates, with quite a few showing gains of 100-200% y-t-d. “Investors” should keep this in mind when their stocks begin to experience corrective activity.
Comments on this entry are closed.