The Memory-Free Market

 | May 02, 2013 | 3:33 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

mmm

,

adt

We just seem to forget. We forget why 3M (MMM) went down. What was that? What happened? I forget.

Or how about that ConocoPhillips (COP)? Didn't they report a miserable quarter? Or certainly one that showed little growth? Wasn't VF Corp. (VFC) a major miss with major handwringing? Didn't Toll Brothers (TOL) disappoint?

I think this remarkable market cannot recall what went wrong. It seems to forget it so quickly that it's childlike. It forgets its homework constantly. Plus, there were so many negative analysts who downgraded ahead of quarter, which then turned out to be not that bad -- think Microsoft (MSFT) -- that we see scrambling constantly as the macro worries diminished and whatever specifically bothered us has just been rendered irrelevant.

So what's next for revaluation? There was some worry about United Technologies (UTX) and General Electric (GE) citing Europe, but if you are like me, you think Europe is turning. How about some of these food stocks? Hershey (HSY) reported an amazing quarter, and it is still trying to shake off the selling. People didn't like the FedEx (FDX) quarter, but how long can that negative stay with this comeback stock?

And of course, there is ADT (ADT), which we own for Action Alerts PLUS. Here's a company that basically delivered what it was supposed to do and fell almost 10% for doing so, and it had already lost 5 straight points coming into the quarter.

Preposterous, especially because it is a housing play.

I will find out tonight if Allergan (AGN) can bounce when I talk to the CEO, David Pyott, but I think the 13% decline was in excess, not unlike the plunge in IBM (IBM) from $212 to $188.

The market doesn't like a quarter? Give it a few days, and all will be forgiven. 

Columnist Conversations

The new Fed Chief said this at a recent meeting of the Economic Club of NY ... "We have indeed had a disappoin...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.