Stocks looked like they were going to put in a 5th straight session in the plus column Wednesday. Then Ben Bernanke's press conference soured the mood in a hurry.
What did he say that sent spooked investors? He said nothing at all. He just repeated everything he has said in the recent past;
Inflation is up, but don't worry.
Economy is growing slowly, but don't worry.
QE2 is over by end of June, but don't worry.
What's so bad about that? Well obviously there were many traders who were banking on a new QE3 to keep the dollar and interest rates down which would be good for the stock market (remember what a great tonic that was for stocks as they went from Dow 10,000 to 12,800). Without any help from the Fed, then the economy will have to mend itself. Which I think it will. It's just not as sure of a bet as having the Fed bankrupt future generations for us making quick stock market gains today.
This probably means that our arch nemesis, volatility, will hang around a bit longer. Yet as time progresses I think the Fed will be proven right. That being the economy will continue to grow and that should be enough to promote new job creation, higher corporate profits and higher stock valuations. So those with patience will be rewarded for buying stocks at current valuations.
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Executive VP, Zacks Investment Research
Today's Top Stories: Thursday- June 23, 2011
ZACKS RANK BUY STOCKS
- Aggressive Growth - Genesee & Wyoming Inc. (GWR) Zacks Consensus Estimate for 2011 is up 11 cents, to $2.73 on the news. Next year's average forecast is up 24 cents, to $3.27. This is growth rates of 28% and 20%, respectively.
Growth & Income - Oxford Industries, Inc. (OXM) reported first quarter earnings per share came of $1.07, beating the Zacks Consensus Estimate by 7 cents. First quarter sales were up 27.3% year-over-year to $208.3 million. Read More...
Momentum - Select Comfort Corp. (SCSS) saw some very bullish movement in estimates off a good quarter, with the current year jumping 27% to 90 cents. The next-year estimate is up 24 cents in the same time to $1.08. Read More...
Value - Iconix Brand Group, Inc. (ICON) saw record revenue in the first quarter, including internationally. Even with shares near a 10-year high, the company still has attractive valuations, with a forward P/E of 14.3. Read More...
Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...
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VIP "Neurodoc" calls it..."Mini-rally may be stalled by doji-like reversal action today; also RSI back toward 50%, could be resistence for current intermediate downtrend. I previously reduced my ETF short exposure 50% in anticipation of this rally, but... Read More...
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