Stock talk for the main street investor.

The Market’s Twists And Turns

I’ve been out of commission for two weeks as I attended a seminar on sustainable development. Very interesting topics of discussion and the people and teachers of INCAE Business School in Costa Rica were very impressive. Now, on with the show.

The last two weeks have been up and down for the stock market. Positive economic data two weeks ago drove stocks higher but sketchy data has knocked it down the last couple of days.

I’m not overly concerned with the short term fluctuations of the market but the next month will be very telling for our important economic recovery. Currently far too much attention is being paid to the jobs data released on a weekly basis. What we should be concerned about is continued strong performance in earnings. Because if earnings continue to be strong hiring will soon follow.

If corporate profits were to flounder for the next six months corporations would be hesitant to hire and the recovery would take even longer. As companies like Starbuck’s and Seagate post strong numbers I’m encouraged for our economic future.

I’ve also been pleasantly surprised at the large number of job postings early in January. As the fiscal year rolls over I was hoping to see increased hiring which will help our upward spiral. I’ll keep an eye on earnings the next few weeks and give my thoughts here on Main Street Stocks.

Disclosure: Author is graduating in May with an MBA in Finance and is looking for a job.

Comments are closed.