There are still plenty of earnings reports to come in the next few weeks, but most of the major technology names reported this week.
The numbers were quite good.
The senior indices have been running up for weeks and were quite extended into the earnings announcements. It isn't a huge surprise that there were some "sell the news" reactions given the overbought technical conditions.
Action in the broader market remained quite mixed. Pressure on small-caps and speculative names lifted a few times momentarily, but they still struggled to generate sustained momentum. There does appear to be some bottoming action, but the primary problem they face is whether they can continue to lift if big-cap names see more pressure.
Selling into good news is never a positive, and we will have to watch to see if it triggers more selling in the days ahead. The good news is that there are some excellent earnings reports out there. The economy is obviously coming back very fast, and there are going to be some companies that do very well. Once the market shakes off some excess and resets, we will see better trading.
This a very challenging market right now, as good earnings are not enough to generate positive momentum. Eventually, the news will be digested, but it likely will take a little time.
Have a great weekend. I'll see you on Monday.