This morning, the S&P 500 Index e-mini futures (ES-M3) are trading lower by 1.25 points to $1591.25 per contract. Earlier today, the ADP job report showed that 119,000 new private sector jobs were created in the month of April. This number is disappointing for the economy since economists expected 150,000 new jobs. On the flip side, the number is likely to be bullish for the stock market since it will reassure the market moving institutions that the Federal Reserve will continue to inflate the equity markets via its latest quantitative easing program. Currently, the central banks is buying $85 billion worth of U.S. Treasuries and mortgage backed securities every month. Remember, good news is good for the stock market and bad news is even better for the stock market when money printing is involved.
Many leading stocks continue to decline after earnings. Merck & Co (MRK) is the latest stock in the Dow Jones Industrial Average (DJIA) to miss earnings. Some other leading stocks that have missed earnings estimates in the DJIA include Pfizer Inc (NYSE:PFE), International Business Machines Corp (IBM), Caterpillar Inc (CAT), 3M Co (MMM), Procter & Gamble Co (PG), and others. This just proves that bad news is good news as the major stock indexes make new highs.
Below you may find the video.
Many leading stocks continue to decline after earnings. Merck & Co (MRK) is the latest stock in the Dow Jones Industrial Average (DJIA) to miss earnings. Some other leading stocks that have missed earnings estimates in the DJIA include Pfizer Inc (NYSE:PFE), International Business Machines Corp (IBM), Caterpillar Inc (CAT), 3M Co (MMM), Procter & Gamble Co (PG), and others. This just proves that bad news is good news as the major stock indexes make new highs.
Below you may find the video.