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Sad week swept the stock market , after a rapid rebound , the Dow Jones index back up to above 10,000 points . Some good news for corporate profits and employment data on small improvements are needed to encourage investors , the sharp end of a two-week adjustment .Louis Vuitton bags

Last week, the Dow Jones index rose 511.55 points to 10,198 points, or 5.28% . Standard & Poor’s 500 index rose a larger number , was 5.41 %, up 55.35 points to 1,077.93 points last Friday ‘s close . The Nasdaq composite index rose 104.66 points to 2196 points, or 5%.

The market of enthusiasm from the State Street Bank (State Street Co.) and Samsung (Samsung Electronics) and others good performance. This probably means the beginning of second quarter results this week, reports of which may be expected to achieve a better analyst . Wall Street expects second- quarter profit increase of 27% on average .

According to Thomson Reuters (Thomson Reuters) U.S. corporate earnings , said John Butters , research director , despite stock market volatility , profit expectations in recent months has not changed much . April 1 , the analysts had expected second- quarter profit will increase by 22.7% by the end of May when the expected value increased to 27.7% . Since then, analysts expected value only slightly reduced to 27% earlier .

According to analyst forecasts, the next four quarters will continue for a good time. Wall Street expects third-quarter profit up 25% in the fourth quarter , up 33 %, respectively , after growth of 13% and 20%. In general , this means that S & P 500 profits this year will reach 82 U.S. dollars per share , up 96 U.S. dollars next year , more than three years ago before the dollar hit a record 88 high .

The latest market correction that investors have great optimism for such doubts . At some point, such doubt will be correct, but it may be premature . Butters said the trend of the past two to three quarters of companies show a higher profit expectations more than the normal level.

S & P price-earnings ratio clearly shows that the uncertainty of investors , the current price-earnings ratio of 12 times , 14 times lower than the average of the past five years . If in the next few weeks, enterprise的CEOs recognition of economic and business continue to improve , even if only slightly , while allowing those people were expected to second bottom proven wrong , last week ‘s rally will not be short-lived .

Wells Capital Management chief investment strategist James Paulsen believes that the employment situation will be critical to the performance of the second half of the stock market . If the number of initial claims for unemployment benefits fell to 400,000 , the market will rise to maintain the current level if the S & P 500 index will likely return to 1,000 points .

Paulsen that the former case will be won . He said that faster economic growth , create jobs and speed the recovery is faster than the previous two , and the recovery of profits based on the creation of employment has been made .

Paulsen said that over the past year , private sector jobs in a single contribution on corporate profits growth of 35% -40 % . This is the largest increase over the past 60 years . When the substantial growth in the labor value of the occasion , the company’s chief executive, who will increase the number of employment , because of their desire to increase profits more than worried about the future .

Lawry Research technical analysis consulting firm , said Paul Desmond , president , although the data has been some writing on the wall , but absolutely for the better . Last week’s market trends show that the adjustment is over, is still in bull market .

Desmond needs to determine by observing the stock market direction . Since April , he has found that the expansion of demand , fell by up to increase the number of shares to reduce the number of shares . currentaffairs-3166

Although due to hedge funds and traders in and out of electronic markets, volatility may be larger , but the upward trend in the stock market will likely continue for some time. Bull market has been for a year and a half , replica purseshave not yet peaked in the early signs . So that the bull market will continue to run Desmond year and a half or two years.

This entry was posted on Monday, July 12th, 2010 at 6:54 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.