This is a market looking for excuses to shed points. Today's excuse is the Tankan Report.
Interestingly enough, the brief synopsis that I read of the report suggested a bottoming of the Japanese economy. To me, that means the beginning of the end of the downward spiral. Consistent with this, the Nikkei's drop was small compared to past days, and it even pulled up substantially from its lows near 13,000.
Still, the US Futures are down some 20 points on the Tankan Report. Perhaps this will turn around, perhaps not, but clearly when the market wants to turn south, it will use whatever news it can find (NT and the telecoms; Tankan and the rest of the market). The same holds true, of course, on the bull side of things (when the weakest of news can propel stocks higher).
Just saw that FORE prewarned this morning. It is trading down to 11 on instinet. May have some sympathy impact on other networkers:
DB 05:17 [FORE] FORE SYSTEMS SAYS Q2 REVENUE BELOW ANALYSTS' EXPECTATIONS.
DB 05:17 [FORE] FORE SYSTEMS WARNS Q2 OPERATING NET INCOME OF 9 TO 10 CENTS PER SHARE.
Gary Korn
Gary Korn |
