Taking Profits The Easy Thing To Do Ahead Of Earnings, Data
It was tough finding anything that could lift the markets today. Investors seemed to take direction from a not-so-great report on capital goods and took some profits ahead of third quarter earnings season.
Also, while pending sales of existing homes were slightly better than expected, this morning’s report showed some deterioration in pricing. The analyst community also issued several key downgrades this morning. Goldman lowered its rating on Microsoft ( MSFT – news – people ) to neutral, blaming a slow recovery and competition from tablet computers that do not include the Windows software. AOL was also downgraded from buy to hold by Benchmark Securities. That firm said the stock already reflected a moderate advertising recovery.
On a valuation call, Avon Products ( AVP – news – people ) and Bristol Myers Squibb ( BMY – news – people ) were downgraded by Morgan Stanley ( MS – news – people ) . Retailers Macy‘s ( M – news – people ) () and J.C. Penny () also saw their shares downgraded on valuation by Goldman Sachs ( GS – news – people ) (). The Goldman analyst said both retailers have outperformed the markets and could be trading too far ahead of earnings.
After a very strong September, traders were reluctant to rally, especially just ahead of third quarter earnings reports and the big jobs number, to be released on Friday. All three indexes closed in the red today, with the Nasdaq losing the most, down 1.1%.
Market News Video produces and distributes online videos about stocks and investing.
Similar Posts:
- Daily Market Wrap
- Stocks Inch Higher Ahead Of FOMC Meeting
- Coming Soon: Bank Dividends?
- Apple iNvincible? Shares Soar to Record High Ahead of Earnings
- Next Week’s Tape: Earnings Galore, Plus Some Housing Data
