Two intense weeks of earnings and my brain is beyond fried and ready for some R&R. As we go into this weekend, I am sitting here with the following thoughts to ponder.
-- It looks like the theme for earnings season thus far has been that if a company beats, the stock pops and then drops -- see Google (GOOGL, GOOG) and Netflix (NFLX) -- so take your profits quickly. There may be one or two exceptions, but that seems to be the general theme as of now.
If a stock disappoints, it gets taken to the woodshed and takes all the rest of its ilk down with it -- a la TripAdvisor (TRIP).
-- Chinese PMI below 50 for the fifth month in a row. If anyone out there believes the Communist government is going to allow the wheels to come off its vaunted GDP growth, I have some oceanside property to sell you in Dallas. It just will not happen. More importantly, it's the U.S. consumer that drives global GDP growth. Yes, in a few years it will be China and it will be India, but not right now.
I wonder if the morons at our Fed are paying attention to this weakening of Chinese data the last year and a half. High-quality jobs are still being lost in droves stateside. The Fed has backed itself into a corner on raising rates, but it's still not too late to admit the stupidity and ease off the pedal.
-- Many are wondering what the TRIP miss means for Priceline (PCLN). I have never been a fan of TRIP and I think this is company-specific totally. Looking to add to Priceline, which is a very longtime holding for me, sometime in the next week.
-- A very real dilemma is, given our "good" labor statistics, are we actually turning into a nation of low-paying jobs? Anecdotally, it sure looks that way given how many college grads whom I know are underemployed as the bills start to pile up and they take any job they can get. Corporate America is still slashing jobs, so where is the pickup in slack coming from? McDonald's (MCD)? Burger King (BKW)? Service King? Jiffy King? Smells fishy to me. How about you?
With that, I bid you a great weekend. I have the first of my four fantasy football drafts on Sunday and I am pretty stoked about the Cowboys this year. Go 'Boys!