Columbus Day Today, Fixed Income Closed, and a Slow Start to a Fast Earnings Week

Columbus Day is observed today, leaving the Fixed Income and banks closed, but tomorrow brings a full slate of earnings.

Today, Fixed Income Markets (Bonds and Banks too) are closed in observance of Columbus Day. A quick review of earnings reports due, shows only a few today, but looking  later into the week, we will get a great read on the economy as many companies from various sectors of our country will report their earnings.

As a quick review of earnings season, here are a few high points from our standpoint:

• Larger Companies have bigger impact due to their diverse income portfolios
• Guidance trumps current earnings (A great report for this quarter will not matter if companies guide lower in the future)
• Early reporters will set the tone for the season (This week reports will set the momentum for the season)
• Bad reports from close competitors will up the scrutiny of all fellow companies in the same industry

Have a Good day !

Donald and I will be out most of the day today at an industry event.

JK