Week Of Earnings Announcements

This week could definitively determine the route U.S. equities are going to take. Tuesday:  Procter & Gamble and Intel; Wednesday: JP Morgan, Thursday: Goldman Sachs and Citigroup; Friday: Bank of America and General Electric.  I suspect banks will report something similar to previous quarter; but the market impact would not be so profound. I still believe that the banking crisis will have round two, but not at this moment, probably in few quarters. Interesting Bloomberg article today on bank earnings composition. Bloomberg story: Writedowns on Mortgage Servicing Make Even JPMorgan Vulnerable . We will see when the reality catches up with accounting.

On the volatility front we have VIX flirting with support levels looking for a breakout on the down side.

Chart 1. VIX Index

$VIX 12102009

Chinese new lending facilitated by four major banks has reached new lows. Caijing story: New Lending by Four Biggest Banks Hits New Low. Depressed exports and slowing lending doesn’t sugest usual super growth in China.

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This entry was posted on Monday, October 12th, 2009 at 9:32 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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