We’re only a couple of days into earnings season, and yet it’s becoming dead obvious that it’s turning into a total flop.
All the big names: IBM, Goldman, JNJ, etc. are disappoionting in some way, usually on the top line. And though healthy margins are great, this is exactly what we don’t want to see when the fear is of a double dip.
The reverse — strong top line, but weak margins — would probably be much more welcome, since cost inflation is not the big concern right now.
So the market is selling hard right now, with the Dow off 124, and the NASDAQ off about 1.5%.
Photo: Yahoo Finance