hmmmmm....Will the S&P 500 reach 1000?
Posted Aug 3rd 2009 11:20AM by Connie Madon
Filed under: Earnings reports, Forecasts, Market matters, S and P 500
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The stock market is on a tear. The S&P 500 index has had its best five months since 1938, with a 46% gain from its March 12 low. On Friday the S&P 500 closed at 987.48, so we have only 12.52 points to go. Volume has not been that impressive on the up side.
Now we must ask ourselves: How did the experts come up with the ammunition to predict the 1000 level? With the glass half full they are saying that 74% of the companies reporting second quarter results beat Wall Street expectations. This data comes from Thomson Reuters analysts. What is hidden in this report is that while earnings beat expectations, most are below last year's numbers.
Analysts expect job losses to total 320,000 for July, down from the 467,000 in June. Whether these numbers will be discounted and the rally remain intact is anyone's guess.
Markets are psychological and often defy logic. This year has shown this to be true in spades. The recent numbers last week showed NO growth in the economy, even though they were better than June's numbers. The market discounted the whole bunch and just kept rallying.
When psychology and reality meet again is anyone's guess.
Do you believe that this market rally will continue, even beyond 1000 in the S&P 500?
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