Financial, World News - Thursday, October 15, 2009 16:07 - 0 Comments

The Dow Breaks The Glass Ceiling Yesterday Then Tumbles Today

Companies – Goldman Sachs Group Inc. (GS)   Citigroup, Inc. (C) Google (GOOG) International Business Machines Corp. (IBM)   Advanced Micro Devices Inc. (AMD)

Is this an economic recovery, or the quiet before the storm? Yesterday the market was soaring, reaching toward new highs; today caution is in the wind, most likely over Goldman Sachs and Citigroup earnings.

Yesterday 10,000 (on JPMorgan Morgan Chase & Co) today the Dow has slipped with a Day Range of 9,977.47 – 10,017.68, not devastating true, but indicative of stocks slipping.

Yesterday JPMorgan was the shining star, sending seeming glee through investors and sending the DOW toward the ceiling.  Today JPMorgan is yesterday’s news and Goldman Sachs and Citigroup take center stage with their earnings report, and they most assuredly did not get an “A” for effort.

While Goldman Sachs (GS) best expectation with $3.19 billion, the stock fell on revenues.  Citigroup was in similar shape reporting smaller losses than expected, but still stating credit losses were high.

Jobs were a bit better, easing the rising blood pressure of many, and sell-offs for others

“Things are going in the right direction but the fundamental economic improvement is slow,” said Robert Dye, senior economist at PNC Financial Services Group. “The tendency is for the markets to get ahead of themselves and have to be rebalanced periodically.”

Earning reports are always a strong indicator of our economy as a whole, and how a company is doing in particular.  Without a doubt investors will be looking closely at Google (GOOG) International Business Machines Corp. (IBM) and Advanced Micro Devices Inc. (AMD) to see how they measure up.