While a few high-profile IPOs like Seaworld Entertainment (SEAS) and Norwegian Cruise Lines (NCLH) have caught the investing public's attention this year, the real action has been in secondary offerings. Why? Low interest rates and a stock market that's up 14 percent this year has made this one of the best markets in years to float stock.
And the bell rang and what happened was a very modest late day rally. Perfect. A big selloff, and fear levels would go way up. A big comeback, and the bears--who have gained a great deal of traction in the past week--would be throwing stones immediately. Very modest rally is just the right reaction.
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Here are my thoughts so far today: 1) As expected, sloppy trading--weak open, modest rally, sell into rally. The crowd yelling "oversold" cannot drown out the great majority, who feel it is not really worth it to be a hero until things settle down.
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Traders expecting a sloppy day, with weakness at the open, but many are anticipating an attempt to stabilize right after that: others insist there is no reason to step in and be a hero on the long side.
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AmEx on Monday will tell us about how consumer spending looks, but the pattern is clear: CEOs are talking down expectations. Sound familiar? They did this before! At the end of Q1, there were all sorts of comments from CEOs not to expect much in Q2 and Q3.
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We are down today and here's some of the explanation: energy and industrial companies are emphasizing the slowdown in the U.S., while noting growth overseas. This is causing traders to question earnings assumptions for Q4 and 2008.
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As with Union Pacific, Caterpillar came out with very cautious commentary. Caterpillar's third quarter earnings were slightly below expecations, and they lowered 2007 outlook (down 3% pre-open), but the name of the game is to lower expectations overall.
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I know what you're thinking...man, when is earnings season going to end? We're only through one-fourth of the S&P 500 earnings, and it seems like it's been going on...forever. It's a little bit of an illusion. The problem is that, as Nick Raich points out, the first part of earnings season
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Midday observations: Bank of America joining Citi in essentially announcing they are eliminating their share buyback program (to be technical, the headline said "only limited share buybacks until late '08"). It's likely that their hefty $2.56 dividend (5.3% yield) is safe, for the time being.
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Stocks are struggling with familiar problems this morning: 1) The Yen has rallied against the dollar and other currencies, again reviving concerns about the yen carry trade unwinding; European equities are lower.
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Here's what we have today: 1) Fed Beige Book a little more downbeat, talking about slower growth and softer consumer, but noting that global growth remains strong.
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Direct from the floor of the NYSE, Trader Talk with Bob Pisani provides a dynamic look at the reasons for the day’s actions on Wall Street. If you want to go beyond the latest numbers— Bob will tell you why the market does what it does and what it means for the next day’s trading.
A CNBC reporter since 1990, Pisani reports on Wall Street and the stock market from the floor of the New York Stock Exchange. Follow him on Twitter @BobPisani.
CNBC's Bob Pisani looks ahead to a short week and the earnings reports that are left, as well as what could come out of the Bank of Japan. Also, a re-balancing in the Morgan Stanley Index happens next week.