Transcript:
Tom Vaughan:
Hello, everybody, welcome to Monday. The S&P 500 was down about .7%, today. It was actually up almost a half a percent, and then came back down, so a little bit of a volatile day. We’re heading into earnings season, so this is when all the companies are going to start to report their earnings. The expectations at the beginning of the quarter were for a really good quarter actually. And as you might remember, in the first and second quarter of this year, companies were beating their earnings expectations by quite a bit. Those expectations got raised even higher, and then along comes the shortage of labor, for the job openings that aren’t being filled, and the shortage of supplies, which are combining to kind of slow things down. Again, can’t sell things if you can’t get people or supplies to make those things. So that’s going to be kind of an interesting piece.
Now the market has already floated down some, in anticipation of that. I’m sure we’ll see some companies still beat their earnings expectations, even if they’ve been lowered. So that should be interesting. However, you still normally see volatility throughout the earnings process. So even companies that often have really good earnings, you don’t see the movement always right away. Sometimes it’s a little bit later, so just something to hang in there on. I do think that these are really honestly historical earnings, even if they’re lower than what was expected, because of these other issues. Still seeing some pretty good earnings happening here.
The other thing that’s happening is just kind of on a technical basis, the market was up today, that gets up near this 50 day moving average, which is currently below, and it came back down. And so that’s something I talked about last week, also. People use that as a trading mechanism, so when it’s above it and it comes down to it’s 50 day moving average, they’ll often buy and you’ll see a bounce. And when it’s below it, they do the opposite, they’re selling as it’s getting to the 50 day moving average. So, it needs to break through that and then maybe it’ll kind of have a catalyst, if it can to get moving forward. So you know, that’s sitting there also, we’ll see how that plays out as far as that goes.
But I wouldn’t be surprised to see a quasi-sideways motion happening here as we go through this earnings season because there’s a lot of unknowns that we’re dealing with right now, and how all this is going to translate into the price of the stock. So look forward to seeing what’s going to happen tomorrow and see you then. Thank you very much.