The Earnings Season Party Ends
Friday, August 14, 2009 at 06:21AM Earlier in the week we posted that the Q2 earnings season was tracking to be the best in terms of market performance in at least 8 years. Unfortunately for the bulls, the earnings season party came to an end yesterday with Wal-Mart's report. When the closing lights came on, the S&P 500 was up a whopping 15.14% since Alcoa reported on July 8th.
Bespoke readers will remember how strong the market was during the first quarter earnings season as well. With a gain of 9.51% from April 7th through May 14th, the Q1 reporting period had been the best earnings season for the S&P 500 in 8 years heading into to this quarter. But once Wal-Mart reported on May 14th, the bulls strugled to find the next catalyst to propel shares higher. From the end of the Q1 earnings season to the start of the Q2 earnings season, the S&P 500 was down 1.51%.
Don't be surprised if we begin another period of sideways trading now that the most recent earnings season has come to an end. With the Dow down a quick 150 this morning, it looks like the hangover could be pretty rough.
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