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Google (GOOG) reported earnings after the closing bell, and we’re in that awkward period trying to figure what the heck it all means.

By the books, it was a great quarter. Google’s sales soared 86% from $1.03 billion last year to $1.92 billion this year. Net income rose from $204 million to $372 million. On a per-share basis, earnings grew from 71 cents to $1.22.

But Wall Street isn’t concerned with the earnings by official accounting standards. They want to see the corrected, adjusted and altered numbers. By that standard, Google flopped. The company earned $1.54 a share, 22 cents below forecasts.

Opps.

It seems that Google’s tax payment caught analysts off-guard. In the after-hours market, the stock is trading over $62 lower.

Except for Sysco (SYY), our Buy List had a decent day. The sell-off in Sysco wasn’t too surprising since it had such a strong day yesterday. Expeditors (EXPD) and Donaldson (DCI) both hit new highs today; SEI Investments (SEIC) reports tomorrow.

Today was Alan Greenspan’s last day at the Federal Reserve. Tomorrow, Ben Barnanke takes over. The Fed raised rates for the 14th straight time. Here’s the Fed’s statement:

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 4 1/2 percent.

Although recent economic data have been uneven, the expansion in economic activity appears solid. Core inflation has stayed relatively low in recent months and longer-term inflation expectations remain contained. Nevertheless, possible increases in resource utilization as well as elevated energy prices have the potential to add to inflation pressures.

The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives.

Voting for the FOMC monetary policy action were: Alan Greenspan, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Roger W. Ferguson, Jr.; Jack Guynn; Donald L. Kohn; Jeffrey M. Lacker; Mark W. Olson; Sandra Pianalto; and Janet L. Yellen.

In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 5-1/2 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Kansas City, Dallas, and San Francisco.

For the first time in 19 months, the "measured pace" language is nowhere to be seen.

Posted by edelfenbein at January 31, 2006 4:51 PM