Commentary

July 27, 2009 (FinancialWire) (By Genevieve Hawkins) — Wall Street could be expected to take a break after two weeks of massive gains, and if earnings from Exxon (NYSE: XOM) and Disney (NYSE: DIS) are disappointing, stocks may actually retreat.

Last week the Dow rose 4.0% while the S&P 500 rose 4.1% and the Nasdaq increased 4.2% on the back of stronger than expected company earnings reports. Although the feel-good rally could continue for a time, the results point less to growth in the future than they do to stability.

The earnings blitz will continue in the coming week, though if the prior reports are any indication the results will largely beat expectations. Investors will also peruse economic data on home sales, consumer confidence, and second quarter GDP. There’s no specific catalyst for a stock market drop, and plenty of reasons why the rally should continue.

Investors may be spooked in the coming week nonetheless as they consider the prospect of rising prices amidst falling demand. Better than expected may prove not good enough if the bar keeps getting set too low. 

The Investrend Events Calendar showcases LM Shareholders Meeting.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 20 advancers versus 28 decliners and two unchanged. Advancers were led by RF Micro Devices, Inc. (NASDAQ: RFMD) up 15.24%, Sequenom, Inc. (NASDAQ: SQNM) up 8.98%, Las Vegas Sands Corp (NYSE: LVS) up 7.19%, M G M Mirage (NYSE: MGM) up 6.47%, Fifth Third Bancorp (NASDAQ: FITB) up 6.00%. Decliners followed Riverbed Technology, Inc. (NASDAQ: RVBD) down 16.45%, Microsoft Corporation (NASDAQ: MSFT) down 8.26%, Amazon.Com, Inc. (NASDAQ: AMZN) down 7.86%, Broadcom Corporation (NASDAQ: BRCM) down 6.79%, Cytrx Corporation (NASDAQ: CYTR) down 6.20%.

Investrend Website of the Day: http://www.bbc.co.uk/wales/history/sites/cag/pages/cag-patagonia.shtml

Quote of the Day: “The Llama is a woolly sort of fleecy hairy goat with an indolent expression and an undulating throat Like an unsuccessful literary man.” Hilaire Belloc

Today is: National Korean War Veterans Armistice Day, Take Your Houseplant for a Walk Day.

Happy Birthday: Charlotte Corday, Alexandre Dumas fils, Leo Durocher, Keenan Wynn, Norman Lear, Jerry Van Dyke, Peggy Fleming, Maureen McGovern, Maya Rudolph, Alex Rodriguez.

Today in History: A Royal Charter was granted to the Bank of England in 1694. Welsh settlers arrived in Argentina at Chubut Valley in 1865. The Atlantic Cable was successfully completed in 1866, allowing transatlantic telegraph communication for the first time. The United States, People’s Republic of China, and North Korea, signed an armistice agreement in 1953, which Syngman Rhee, president of South Korea, refused to sign, though he pledged to observe the armistice.

[FirstAlert^TM was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information (http://www.investrendinformation.com). The opinions expressed in FirstAlert^TM do not necessarily reflect the opinions of Investrend.]

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.