- the market's ability to rise in spite of disappointing earnings from blue-chips; and
- why you should avoid Avon and Herbalife.
What's Truly Amazing About this Market Posted at 9:35 p.m. EDT on Friday, April 26 Now, think about it. Think about who has disappointed this quarter. First, obviously, there is Apple ( AAPL), with a quarter that is now regarded as the benchmark of bad quarters with the most downgrades and price target cuts of any this year. Apple used to be the largest-market-capitalization company there is, before passing the torch back to ExxonMobil ( XOM), which, yes, reported the worst quarter so far of any oil company.
Then there is IBM ( IBM), the bellwether tech company of the Dow Jones with a hugely disappointing report that drove the stock down 22%, or 10% in a couple of days' time. Or how about Amazon.com ( AMZN)? Is there a more important retailer save for Wal-Mart ( WMT) out there? I don't think so, and yet its report struck people as sorely wanting and the stock got pummeled for almost $20. Or 3M ( MMM), one of the cornerstone industrials out there, which reported a heavily disliked quarter and then gave you a forecast cut that sent shudders down peoples' spines; spines of those who are used to this company's consistent earnings growth. It got dinged again today after being clipped hard on Friday's report. Then there's AT&T ( T), the largest phone company, which gave you a quarter that sent the stock down the hardest I can ever recall it getting hit in one day. Just a nasty decline for the $200 billion behemoth and the commentary made you feel that there's no real growth there at all.
But it wasn't as horrid as the quarter Procter & Gamble ( PG), the one that dropped the stock to $76 from $82 before it stabilized today. Procter, at $200 billion, is the largest consumer-products company out there and it was just a nasty report.