With the stock market slowly moving off of lows set early last week, look for Google's (NASDAQ: GOOG) earnings to be just what the doctor ordered to rocket the market forward. As Brian White posted, "Google's shares have been shaken from a high of over $700 this past Christmas to under $543 today, as the company has joined in with the overall market teeter-totter amid continued housing worries and recession talk and FUD that spreads like wildfire every week."
I think that the company will report blow out numbers, as it has done in the past. The catch this time is that the market hasn't set Google up for a fall. I don't believe expectations are all that high due to the market rout. If Google surprises to the upside, this will be what the bulls among us have been waiting for, and I would expect a nice 7-10% market move to the upside in the next two to three weeks.
A strong Google report would help justify what I have been saying that technology will be leading the market higher. Microsoft (NASDAQ: MSFT) had a great report last week, let's hope Google has a similar report tonight.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's has no positions in any stock mentioned as of 1/31/08.