Important Earnings Reports
Sometimes Earnings Reports not only tell us how a specific company is doing lately, but can give us insight into how a complete sector is doing or how the entire economy might be affected.
This week we have some such Earnings Reports being released:
CAG .. Tuesday, 22-Sep-09 BMO … ConAgra and
GIS .. Wednesday, 23-Sep-09 BMO … General Mills
both release their Earnings Reports where we’ll look for signs of Sector rotation which would also show the health of the Economy. If these stocks move higher after their Earnings Reports, then investors are still fearing a continued Recession by Buying these “defensive stocks”. That would set off a rotation out of cyclical stocks like CAT and FCX and others .. and be a sign that there may be more weakness to come in our economy.
PAYX .. Wednesday, 23-Sep-09 AMC … Paychex deals with a lot of small to midsized businesses.. which are crucial to US Employment . . . so this Earnings Report can tell us a lot about the recent growth (or loss) trend in US Jobs .. and hence, the possible trend in the health of the US Economy.
BBBY .. Wednesday, 23-Sep-09 BMO? … If Bead Bath and Beyond stock falls after its Earnings Report, then it might be a sign that the Retail sector has finally started to peak . . . signaling perhaps an end to a major part of the engine that has pushed the Stock Market higher since its March lows.
RIMM .. Thursday, 24-Sep-09 AMC … The Quarterly Research In Motion Earnings Report will tell us whether or not mobile Internet and Smart-Phone companies still look good going forward. Apple and Palm recently reported gains in their Smart-Phone sales . . but did they take share away from RIMM, or just add to a growing sector . . . RIMM’s numbers and guidance will tell us this.
So, the Earnings Reports being released this week for this past Quarter of growth can be very important in forecasting the continuation of that growth .. or the possibly temporary end of it for now.
