"And that's the view from 36,000 feet," a very well paid CEO proudly stated on a conference call Wednesday. I was immediately overcome with a range of emotions, first being anger (what the heck does that proclamation actually mean to a granny holding this dividend payer and calling into listen off the rotary phone) and then sympathy/love (well, the CEO doesn't know any better, it's how he communicates with his executive team on the daily). Immediately, one thing became clear: Go for a walk because the emotional peaks and valleys inherent to earnings season are taking their collective toll.So, this burst of written fun was devised alone at the beach, sitting in the section reserved for BBQs, wearing an old Abercrombie & Fitch ( ANF) hoodie (reiterate: American Eagle ( AEO) over Abercrombie for a holiday season play, sell-side upgrades not luring me in). The goal of this mid-week soul searching: to flesh out the positives the market is ingesting after a tough-to-swallow bunch of earnings only a few days earlier. Surely, there has to be more meat to the bullish argument bone than the U.S. housing recovery creating a global euphoria that envelopes everything from lumber manufacturers to Dunkin' Donuts (hope you snagged my free favorable tweet on Dunkin' Brands ( DNKN) a week ago. A Life Filled with Flowers and Unicorns
- Real hourly earnings have had yearly gains only twice in the past 20 months. Oops, lol, how'd that negative enter the mix here? Moving right along. .
- From 36,000 feet, we are able to see that the rallies on Monday and Tuesday were on volume that could be deemed convincing. .
- There has been a nibbling at shares, near session lows, of companies that delivered dour third-quarter earnings, commentary on business conditions, and forward guidance. .
- Energy and materials are outperforming during this mini advance, lending support to these views: (1) easing tensions on the surface in the EU will translate to another month of life in industrial production, and other data from September that indicated a corner turn; (2) post-power transition, China goes from economic concern back to old standby lover for the bulls amid an array of stimulus measures. .
- Since their Sept. 27 lows, the Dow Transport and Baltic Dry indices have risen a cool 4.6% and 31.2%, respectably. To true believers in the mystical powers of Mr. Market, the gains are signaling that the third quarter, commentary and guidance from industrial and multinationals are kitchen sink. Key benchmark names to apply include FedEx (FDX) and CSX (CSX).
- I am personally NOT a fan of doing this to help validate an argument bullish or bearish, but excluding an IBM (IBM) from the Dow Industrials, the index was optically healthier on Wednesday.