DTT Buzz

Q1 2008 has been better than expected with regard to earnings. The market has responded with a solid bull run in response to the bullish earnings environment. This bull run is strong, and has shifted the overall market sentiment. Markets have been extremely data sensitive, and now seem to have little reaction to bearish data. For me, this provides a little confirmation as to the bullish shift in the market.

After the bell last night and before the bell this morning, a few more big names reported. AXP and KLAC both released strong earnings reports. The stocks are getting a nice boost pre-market, helping stage a gap up in the overall market. ARBA and ERIC killed it! AMGN beat EPS by 8 cents and delivered in-line guidance...not bad.

MSFT is the one of the few names that is taking a hit this morning. They reported solid EPS, but were unable to impress the street with their guidance. The stock is trading 4.5% lower, which will cause an "anchor effect" to today's market.

Overall, the earnings environment is not as bad as everyone was anticipating. Although most of the big names have reported, there are still a few left. Keep an eye on these reports, as well as how the market reacts to them.

Regards,

Nick Fenton
Sr. Trade Analyst

http://www.daytradeteam.com/