Techs, JP Morgan Bring Welcome "Relief"
Here are my morning observations:
1) Techs come through: after the disappointment of yesterday, when many regional banks hit new lows, the news flow is far more positive. We said last week techs had to make some positive noises to justify their recent runups: Yahoo , Intel , and Seagate all were better than expected. Intel guided Q4 revenues higher and says it sees healthy demand in Q4. IBM reaffirmed its EPS target through 2010.
2) Sigh of relief: JP Morgan not only beat estimates ($0.97 vs $0.90 estimates) but unlike Cititheir profit increased from last year, by 5%, though CEO Jamie Dimon said, "We remain cautious about the future economic environment."
3) United Technologies saw strength in aerospace and raised its full year guidance, though still in the range of consensus estimates.
4) Still bullish. Last week, Investors Intelligence survey of financial newsletter writers recorded its highest level of bullishness since December 2005. This week, it's even higher, at 62% bullish, highest since December 2004.
5) Uh, maybe we should rethink this idea...India's stock market dropped 9.2%, after Indian regulators began talking about limits on the amount overseas investors could invest in their market. Trading was suspended for an hour on the Bombay stock exchange. Yesterday the Securities & Exchange Board of India (SEBI) said it would change the policity of issuing participatory notes to foreign investors. These notes allow foreign investors to invest in Indian shares.
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