The S&P headed toward to 800. If that had been broken the flood gates would open, even bigger than today’s decline. While a 5.2% decline is not sublime it could have been much worse. Lets hope for some modestly good news overnight so we can have a snap-back rally.
Check earnings for CSX and IBM to be announced after the close. CSX has previously warned about earnings and shares are down from that announcement and down for the day. Consensus is $0.91. IBM consensus expectation is $3.03. Also, Bank of New York, trying to halt the share price (-17% on the day) hemorrhaging, has moved up their announcement to 4:30pm today.
Bearish ideas are usually easier to articulate than positive ideas. Negative news is especially easy to communicate when done in person. A sneer, rolling eyes, shoulder shrug, palms outstretched and a shoulder shrug; using body language and words to describe a catastrophe seems simpler and more effective than postulating positive ideas. For example: “ABC is NEVER going to make the quarter, impossible. (eye rolling) The management sucks (punctuate with finger), their product is outdated (a wave of a dismissive hand) , the president is sleeping with his secretary (double eye roll, shoulder shrug and smacking lips)—its a mess. Get out!!” Now make a positive case:” Should the company enter into an agreeable climate for future growth and be able to control costs within generally accepted accounting principles I have growing confidence the earnings estimate we are projecting will be met.”
Bumper sticker seen at the mall: “January 20, 2009: The End of an Error”.
