The Earnings Rally

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	Monday October 24, 2011 Email Me | Visit our Blog | Subscribe | Unsubscribe Trouble Reading this Email? - Click Here The Earnings Rally Beating Lower Estimates The Latest Default Plan Fellow Investor, Even though third quarter earnings were revised lower, companies are beating and investors like it. Case in point: Caterpillar (NYSE:CAT) was expected to earn $1.54 a share after it warned that the quarter would be weaker back in August. But this morning, Caterpillar posted $1.71 a share and raised its guidance for the rest of the year. We can assume that the weaker earnings, along with weaker growth was priced in when earnings season kicked off. In fact, the rally started before earnings season kicked off with Alcoa (NYSE:AA) on October 11. The bottom hit on October 3, and the S&P pushed up to resistance at 1,200 on October 10. Friday, the S&P 500 took out the 1,225 resistance level. The 1,250 area poses more significant resistance, and it won't be a surprise if there is a pullback in the coming week. But still, stocks are acting like they want to break higher. It's worth asking what could push prices higher, and conversely, what the threats are. For more upside, I'd say we just have to keep bad news at bay. China needs to hold steady, as does U.S. economic data. Economists are already suggesting that 3Q GDP growth was better than expected, perhaps as strong as 2.5%. Again, Caterpillar and others are giving anecdotal evidence that growth has improved. And recent economic data is putting a number behind it, like last week's Philadelphia manufacturing survey, which came in much better than expected. Now, 2.5% is not exactly strong growth, but it sure beats the 0.9% we got for the first half. Also, as much as I hate to say it... [continue reading at WyattResearch.com]       Click to view the remainder of the article... Harvard's Investment Secret While regular investors continually make the same mistakes over and over, the billionaire foundations at Ivy League schools like Harvard and Yale invest differently. In fact, one of their biggest secrets lets them ignore the markets 99% of the time - only coming into the market on rare occasions to seize outsized gains. Click here to read the amazing true story of how the world's smartest investors manage their money.       Previous Issues of Daily Profit The Risk of Not Doing Enough Apple Misses Earnings Estimates' Greenlight Capital's David Einhorn's Favorite 'Short-Sell' For more issues click here »   Market Snapshot U.S. Markets - Oct 21 Close Dow Jones 11,808.79 +267 (+2.31%) S&P 500 1,238.25 +22.86 (+1.88%) Nasdaq 2,637.46 +38.84 (+1.49%) Valuable Investment Ideas From Wyatt Investment Research Why U.S. Dollars Will Not Be Used as Firestarter Don't let the financial pundits capitalize on your fears and concerns! They want you to take all of your personal wealth and buy gold bullion. more» The Only Indicator I Use Wyatt Investment Research's Chief Options Strategist Andy Crowder shares the technical indicator he uses. more» Please Don't Ever Buy this ETF Many investors have been tricked into thinking this natural gas fund is a winner. more» Independent Investment Services Wyatt Investment Research provides investment research that is independent of the back door deals and machinations of Wall Street. more» Need to retrieve your password in order to view our articles? Click here. Disclaimer & Important Information Wyatt Investment Research and Daily Profit is owned and published by Business Financial Publishing, LLC. Business Financial Publishing is neither a registered investment adviser nor a broker/dealer. Readers are advised that this electronic publication is issued solely for information purposes and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. We encourage you to review our full Disclaimer and Disclosure policies. To view our Disclaimer Policy, please click here. To view our Disclosure Policy, please click here If you believe this communication to be a mistake or unsolicited, please e-mail abuse@bfpnewsletters.com with details regarding your situation, and we will be sure to promptly investigate your situation. Did a friend forward you this newsletter? Click here to sign up for Daily Profit today! You are subscribed with the following email address: ignoble.experiment@arconati.us To unsubscribe from this newsletter, please click here. Copyright (c) 2011 Business Financial Publishing, LLC. | Privacy Policy Wyatt Investment Research c/o Business Financial Publishing 65 Railroad Street Richmond, VT 05477 PO Box 790