Earnings Season Kicks It Up a Notch

Today is when earnings season starts to get serious. Just this morning, we learned that Citigroup’s (C) earnings fell short of expectations (I’m not much of a Citi fan). On the plus side, both Charles Schwab (SCHW) and Comerica (CMA) beat expectations. Shares of Apple (AAPL) are down on Steve Jobs’ health news but they should recover, and hopefully so will Mr. Jobs.

The Buy List is doing well so far today. Gilead Sciences (GILD) is particularly strong. I’m happy to see that AFLAC (AFL) is close to a new 52-week high. Friday was a difficult day for us. While the Buy List did gain for the day, we significantly lagged the market due to our exposure to the healthcare sector. For the day, we made 0.21% which was less than the S&P 500’s 0.74%.

Over the weekend, the New York Times had a good and very thorough article on the challenges facing Johnson & Johnson (JNJ). Last year was a very difficult one for the company due to the multiple recalls. Fortunately, J&J’s business is very diversified so the overall business hasn’t suffered. Still, the dents to their image have taken a toll. The company is very aware of what’s happened and is working hard to improve its image.

Posted by on January 18th, 2011 at 10:25 am


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