weaker-than-expected manufacturing data and the brutal 3.6% decline in the chinese stock market last night. how can this clearly bad economic news produce such a remarkable run? dow climbing 229 points, s&p jumping, nasdaq gaining 1.14%. is this opposite day? perhaps the market lost its mind? no, it s like we ve entered bizarre-o world with bad news is good news. why? the uglier the backdrop, the more likely the federal reserve stands pat and refuses to raise rates when it concludes its deliberation this is thursday. this fed meeting, like it or not and you know i don t like it is the most important event of 2015 for two reasons i don t recall a more opaque fed. it s driving me crazy! it s about to render a momentous decision that will surprise people. second, the consequences of a rate hike, listen, you re not going to get that plus and minus stuff for america it s plain negative for stocks but the upside from the no hike while positive as we saw in today s action perhap
they were disappointing but not so disappointing as to panic us into selling. i am talking about the earnings reports we ve been getting every day that would normally produce a cascade of sales but is producing the opposite this time around. and that s been the theme of this entire earnings season when it comes to the industrials, the banks, and oil stocks, a huge part of the market. that explains a lot of the moves we ve been seeing today. where is this counterintuitive pattern most evident? the big international companies. the ones that make the heavy equipment and capital goods. let s talk about a storied industrial, emerson electric. it reported one of the most sad sack numbers i can ever recall from what is a great american powerhouse. sales down 9%. earnings share off 15%. took my breath away. that wasn t enough. the ceo, a bankable fellow, took away any hope for the future of emerson stock when he said, we expect difficult markets to continue through at least the first
a cascade of sales but is producing the opposite this time around. and that s been the theme of this entire earnings season when it comes to the industrials, the banks, and oil stocks, a huge part of the market. that explains a lot of the moves we ve been seeing today. where is this counterintuitive pattern most evident? the big international companies. the ones that make the heavy equipment and capital goods. let s talk about a storied industrial, emerson electric. it reported one of the most sad sack numbers i can ever recall from what is a great american powerhouse. sales down 9%. earnings share off 15%. took my breath away. that wasn t enough. the ceo, a bankable fellow, took away any hope for the future of emerson stock when he said, we expect difficult markets to continue through at least the first half of fiscal 2015. i mean, are you kidding me? that s awful. devastating. but apparently not so awful to attract sellers or buyers either. because emerson electric rallied
a cascade of sales but is producing the opposite this time around. and that s been the theme of this entire earnings season when it comes to o e industrials, the banks, and oil stocks, a huge part of the market. that explains a lot of the moves we ve been seeing today. where is this counterintuitive pattern most evident? the big international companies. the ones that make the heavy equipment and catal goods. let s talk abo a storied industrial, emerson electric. it reported one of the most sad sack numbers i can ever recall from what is a great american powerhouse. sales down 9%. earnings share off 15%. took my breath away. that wasn t enough. the ceo, a bankable fellow, took away any hope for the future of emerson stock when he saqd, we expect difficult markets to continue through at least the first half of fiscal 2015. i mean, are you kidding me? that s awful. devastating. but apparently not so awful to attract sellers or buyers either. because emerson electric rallied a bu
election or the overvaluation of stocks, and they just come in and buy buy buy! their faves. that s what s happening rights now with the dow gaining 168 points, nasdaq climbing .93% today. why the sudden love for the market? first, it s december and december, we get what i used to call the old hedge fund the era of good feelings. that s when you get a tacit deal between major investment firm research departments and large institutional shareholders. it s kind of like the deal my grandmother mary told me. if you don t have anything nice to say, don t say it! except it applies to stocks, not people. simply put, the analysts understand that it isn t worth rocking the boat and downgrading stocks at the end of the year when it could hurt the very accounts of the hedge funds and mutual funds that their firms cover. what s the point of knocking down a stock now when it might damage the annual performance of the big bill payers? so if the analysts don t have anything nice to