It was a red day just about everywhere. Oil continues it’s march upwards and the market acted as if it was the first time they knew inflation would be a problem.
PPI data this morning was on the surface flawed, we all know that. Energy costs did not decline, but their model said it did. But, aside from the top line number, the core showed inflation growing at a rate the markets don’t like. Hey, we gave them plenty of warning that it was coming!
Gold has been making decent gains once again. I’ll take a closer look at the GLD chart tonight. The US dollar has resumed its slide downward.
HPQ earnings:
REPORTS Q2 $0.87 V $0.85E, R $28.3B V $28.1BE (IN LINE WITH THE PRELIMINARY GUIDANCE ISSUED LAST WEEK AFTER THE EMC MERGER ANNOUNCEMENT)
- Guides Q3 EPS $0.82-$0.83 v $0.82e, R $27.3-27.4B v $27.4Be
- Guides FY08 EPS $3.54-$3.58 v $3.53e, R $114.2-114.4B v $114.2Be
- Q2 operating margin 9.2%; Non GAAP: 10.0% v 9.9% q/q sequential
- guidance is also unchanged from last week’s preliminary release
HPQ is trading lower after hours on the lower margins announced by the company. When margins start getting squeezed, then it is a known fact that there is only so much juice you can squeeze out of an orange before it goes dry.
More tonight…
2 Comments
May 20th, 2008 at 5:38 pm
Why not just buy energy stocks? That whole sector is just a money printing press. The technicals are unbelievable. The only reason to not invest in energy is that you just don’t want to be rich.
P.S…I don’t own any energy stocks. 
I stopped out of my MU position at $8.49 today. Posted a 24% gain on that position in about a month! I hate to exit the stock, but I must remain disciplined. I may add a few longs tomorrow on todays pullback as long as the S&P stays above 1410. Any close below 1410 and I would exit any long positions.
Some of the horseman performed strong today…AAPL and RIMM were up in a bad tape.
May 20th, 2008 at 5:58 pm
According to CNBC.com, Jim Cramer said todays sell off was “probably due.” The wheels on the bus go round and round. Round and…