Sam Stovall
Sam Stovall
aggressive bad basically believe bouncing condition deeply earnings easing fed industries interest last likely lower market policy rate remain result sensitive ten top tread water year
Basically the top ten industries were those that are economically sensitive and are bouncing back from their deeply oversold condition last year as a result of lower interest rates. We do believe the Fed will remain aggressive with its easing interest rate policy but we feel the earnings are going to be pretty bad for the first quarter, so the market is likely to tread water for awhile.
believe carrying earning group money positive recently reported shown strong third towards wireless
They recently reported earning where they'd shown that revenues were not as strong as had been anticipated; a lot of that money still comes from your traditional long-distance carrying revenues. However, we like the group longer-term because we believe that, particularly for MCI, they're gravitating more towards the cellular and wireless category, which is the third group in telecom, and that one actually is in a positive camp.
additional continue earnings economic fed fuel investors likely lower negative numbers rates whatever
Investors are going to look at whatever economic numbers come out and say is this additional fuel for the Fed to lower rates in March. Earnings are going to continue to come out and they're likely to be negative so you're going to have earnings weighing on the market.
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We would not be surprised to see investors take a more cautious approach by gravitating toward larger companies with high S&P earnings and dividend quality ranks.
anticipate concerned difficult earnings events interest investors rates third trio weak
While it is difficult to anticipate unanticipated events, investors could become increasingly concerned about oil, earnings and interest rates -- the trio of trepidation -- in the traditionally weak third quarter.
earnings guidance market reasons work
The market has been in an irritable mood. If earnings and guidance are good, and there are no reasons to sell, then things should work out OK.
earnings forecast growth near percent
The forecast from S&P is near 18 percent growth in earnings in 1997 over 1996,
seeing
In general, we are seeing things that look a lot better.
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Increased volatility can certainly cause increase tension, but that's not a reason to step out. It is certainly white-knuckle time, but that does not necessarily mean the good run has ended.
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Everyone is looking to dish the technology stocks on higher interest rates, but they continue to show they are not interest-rate sensitive, or at least as much as people would like.
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Stocks in the past twenty years have been... the best investment vehicle that's available,
book districts federal indication strength whether
The beige book should give us a better indication of where the strength is, whether it's in all the Federal (Reserve) districts or just one area.
bad coming fourth history looking october percent quarter rises
On average, coming out of a bad September, October rises 5 percent and the fourth quarter rises 4 percent overall. So if you use history as a guide, we're looking for a bounce.
feeling worst
The feeling is the worst is probably over for tech,