Because if they want the averages to go higher, the dow, they push ibm. It has nothing to do with earnings or anything else. Just compare the dow chart and ibm. Its really a joke to drop like a rock on earnings and a few weeks later spike up like nothing ever happened, but thats the case for the whole market. Bad news last about 5 mins, and good news is worth 200 pts, even if its really not even good news, as long as its not worse. Case in pt, hpq earnings compared to last year
Last week job #'s were still weak but beat estimates, market rallies and goes up 150 pts. Today jobs #'s were bad, but who cares , market already green again. The data released is meaningless, time after time, just another excuse to squeeze shorts and baffle any logical approach. I guess this market can go up everyday, with the economic #'s going down, the spin at an all time high , and Big Ben inflating stocks while punishing fixed income.
All in the span of 2 weeks, ibm is right back where it started when they annouced %$%$% earnings, and of course as ibm goes , so goes the dow. Who cares if revs are down, guidance was down, and trading at all time high to boot. Went down 12 pts that day, but everything is ok again in just a few short days
In this great hyped recovery, the market spikes up 150 when they add 150k jobs. They never mention that 350k , NEW people signed up for employment benefits. Thats a loss of 200k, but the spin never stops . Anything to make the king look good
Bernanke tells us once again, there is no inflation. In fact he has been telling us this for the last 10 years. Gas has doubled in the last 4 years, and food not far behind. Funny how the 2 most expensive things in everyday life, are not even put in the gov equation. Always amazes me with the scams Wash gets away with . Let the lies continue