EagleTed
08-18-2003, 06:13 PM
The bears cannot keep ignoring profit growths. Catepillar announced big leaps in their profits as did John Deere. Both equipment manufacturers can be viewed as "leading indicators" for the economy. Spending at Wal-Mart and other retailers is also showing good growth. In the high end spending, Tiffany's had double digit growth in both profits and sales. Harley-Davidson had record sales and profits.
Fears of deflation are being replaced by fears of inflation and that is driving bond yields up and bond prices down. Commodities are up, giving a good basis for that fear. That is also a sign of a growing economy.
In a sour note, however, the NASDAQ stocks seem to be driven by pure speculation as profits are slow to return to tech companies, with a few exceptions such as Dell.
Other than that, the bears still point to a lack of job growth, balance of trade, and federal deficits as reasons for worry. But, they can no longer point to the lack of earnings and earnings growth.
Fears of deflation are being replaced by fears of inflation and that is driving bond yields up and bond prices down. Commodities are up, giving a good basis for that fear. That is also a sign of a growing economy.
In a sour note, however, the NASDAQ stocks seem to be driven by pure speculation as profits are slow to return to tech companies, with a few exceptions such as Dell.
Other than that, the bears still point to a lack of job growth, balance of trade, and federal deficits as reasons for worry. But, they can no longer point to the lack of earnings and earnings growth.