Daily Market Update – October 26, 2016 (7:30 AM)
Yesterday wasn’t a great day for the market, but it wasn’t really bad either.
Today., the morning’s futures appear to want to be a clone of yesterday, which was a day characterized by no great earnings news and no great guidance.
The morning’s news yesterday got off to a decent start with some optimistic guidance from DuPont, but there was absolutely no follow through.
After the market’s close, Apple showed that its primary money maker was slowing down, but its share price was pretty resilient, despite the lack of any really good news.
We still have so many earnings reports to come in the next 2 weeks that there’s still time for a happy picture to be painted ahead of December’s FOMC meeting, but the early round hasn’t been very impressive.
Still, that could change where it really counts in about 2 weeks as retailers begin their reports.
Those retailers are, by and large, at pretty low prices and they could use a boost. But. the real importance attached to their earnings will be the guidance they provide, especially if they can finally see the silver lining ahead.
I’m not as sanguine about that as I was a week ago, though.
Friday’s GDP will tell us something, but its really up to the retailers to let us know not only what has happened in the last quarter, but what they see ahead.
That may go a long way toward creating confidence that whatever the FOMC may do will be the correct path to take.
Last year, it wasn’t and I’m certain no one wants to repeat that, nor the ensuing sell off to start 2016.