Back to top

Macro View

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Perhaps we're still a bit early in announcing this -- then again, our senior staff's earlier prediction seems to be bearing out -- but 4th quarter earnings season looks like a big improvement over the 3rd quarter. Earnings reports from Morgan Stanley (MS - Analyst Report) and General Electric (GE - Analyst Report) both beat estimates this morning, following a positive surprise from Intel (INTC - Analyst Report) yesterday afternoon (though Intel guidance has sent the stock down in the pre-market today).

And while there still are plenty of issues to be wary of here in early 2013 -- tax increases and spending cuts, both of which are expected to curb economic growth -- generally speaking, things are looking up. Traction in the housing market continues, retail and auto sales are showing improvement, and overall bank earnings thus far have further advanced the narrative that our harshest economic ordeals are definitely in the rear view.

Only around a quarter of companies have yet reported, but we're seeing roughly three positive surprises for each negative one. This is actually historically typical, as companies have by now mastered the art of under-promising and over-delivering earnings and revenues. And if not for major downward guidance during the course of Q4, we certainly would not be celebrating success the way we are able to do this morning.

We may, in fact, be in a similar pattern to the last couple years: hopeful, positive sentiment in the early months which gives way to grimmer realities in the back-half. Perhaps we'll break out of this pattern and see growth accelerate once economic policies are decided and we can better navigate the playing field, but this remains to be seen.

The markets will be closed for the Martin Luther King holiday on Monday, but we here at Zacks will still be open to offer our subscribers new methods, opportunities and recommendations to improve their portfolios. And while plenty of big-name companies have already put forth quarterly earnings numbers, next week we really get hit with both barrels, including reports from Apple (AAPL - Analyst Report) and Google (GOOG). Stay tuned!


RELATED ARTICLES

Are You More or Less Confident to Start 2013?

Taking Stock of the Q4 Earnings Season (VIDEO)

Economic Growth = Cyclical Rally (VIDEO)

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%