Afternoon Market Update

The stock market is pulling back again today. The pain is particularly being felt among cyclical stocks. That usually means that our stocks are outperforming the market and that’s what’s happening today.

Energy stocks and materials stocks are down the most today. Of all the energy stocks in the S&P 500, ExxonMobil ($XOM) is down the least.

I had mentioned that I found the market’s reaction to Becton Dickinson’s ($BDX) earnings to be baffling. Fortunately, the stock has regained its bearings and it hit a new 52-week high yesterday.

Johnson & Johnson ($JNJ) is finally starting to creep higher. The company had a very good earnings report two weeks ago, plus it raised guidance. I didn’t realize this at the time, but I suspect that some traders were expecting an earnings miss. The shares have continued to rise which may reflect a vote of confidence for the Synthes deal.

I’m surprised to see Moog (MOG-A) react so poorly to what I thought was a very good earnings report. If you haven’t noticed, the stock market isn’t always rational.

Speaking of which, Nicholas Financial ($NICK) is due to report tomorrow. I’m expecting a very good earnings figure (40 cents per share). I think NICK is a $17 stock.

Posted by on May 3rd, 2011 at 2:46 pm

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