While the markets on Wednesday in the USA did not benefit from the strength on Tokyo and the Far East, we had another teeter-totter session with stocks starting in the red and then rallying to close in the green by the closing bell. Earnings continue to roll in with a positive bias. Polo Ralph Lauren (RL) proved that luxury retail is alive and well.
Today we will receive the weekly unemployment claims report. This series has been rather volatile over the course of the past few months and I am expecting that today’s report will be no different. For those of you keeping score, the market expects 365,000 claims for the week. Don’t lose sight of the other data release today, fourth quarter productivity. That metric is expected to decline from 2.9% to a decline of 1.2%. In other words, we are able to squeeze less out of the existing labor force and companies which have been reticent to hire additional staff may have to do so in order to keep up with demand.
Linkedin (LNKD) reports results after the market closes. The question that I have is: will this stock finally succumb to the gravitational force of valuation or will it continue to make the shorts cry?
Now I will return you to your regularly scheduled teeter-totter market.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC had no positions in stocks mentioned — although positions can change at any time.
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant and agricultural stocks. You can subscribe at www.restaurantstox.com
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