Why Markets Can Seem So Weird; 90 Day Treadmill Update and a Mr. Mom Weekend

With over 90% of S&P 500 companies reporting this 90 day Treadmill Season, we thought it timely to point out how markets can seem weird at times.

The average surprise, according to Thomson Reuters this quarter, is positive 3.9% across all sectors of the S&P 500 with the following winners:

  1. Technology + 9.6% Positive Surprise
  2. Industrials + 8.5% Positivie Surprise

And the Following Losers:

  1. Utilities -2.8% Negative Surprise
  2. Telcom -0.5 Negative Surprise

Worth noting, the negatives are not extreme, which is good.  With a relatively normal earnings season and forward estimates for the next quarter trending down a little over 1% (we always say the capital markets are forward-looking) Why are the markets so weird, and going up?

Fear and Greed (Relatives of Zigg and Zagg)

The markets may seem weird by going up, with earnings trending down and a somber picture moving forward until we consider our friends fear and greed. Fear has subsided greatly over the Greek situation, rightly or wrongly. Remember last year was a relatively flat to down year in the capital markets even as companies turned in 15%+ report cards from their annual treadmill reports.  Greed, another friend, has increased somewhat as risk appetites have returned to the table and are showing their hands in money flow, asset selection, and rotation of leadership.

A Mr. Mom Weekend:

For the next 60 hours (I am not counting..haha) I will fly solo with Sophia (7) and Pierce (4) as a girls trip to the coast takes Pamela away for some much-needed R&R. Watch out fashion police, (I always have trouble finding matching clothes) and yes they will probably get an extra chocolate or two, but it will be much safer here in Dallas with Mr. Mom, than on the coast with a group of 9 girls on Segway’s!

Have a Great Weekend!

JK

214-706-4300

www.jkfinancialinc.com

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