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Upside surprise No. 2, Philips (NYSE: PHG) (Cramer's Take), doesn't seem to do anything more than upside surprise No. 1, Alcoa (NYSE: AA) (Cramer's Take). That's right, we got a quick run-up for Philips when it reported a nice profit, but no follow-through from the rest of the markets in Europe after this electronics company reported.
Why should there be, though? Philips might as well have said "this profit is a sham" from the commentary it put out --more firings, numbers down huge from last year, terrible outlook.
But, get this. One of the analysts quoted in an excellent Bloomberg story this morning says something that states precisely where we are and why this stock is up: AT LEAST THEY GAVE AN OUTLOOK.
After four weeks of drifting down, I would say the consensus that is building around me is that we are done with drifting, and now it's time to get hammered.
I have said on my show and written here that I think going into earnings season after having been down for four straight weeks is actually good news, as we know that earnings season almost never creates a healthy investment climate because we have usually run up before the season begins.
Still, the possibility that the Philips good news is only good for Philips doubtless makes the bears want to growl and ignore the possibility that earnings report No. 3 of consequence, Novellus (NASDAQ: NVLS) (Cramer's Take) -- expected after the close tonight and another one I expect to be good -- won't matter either.
Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.
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Reader Comments (Page 1 of 1)
7-13-2009 @ 12:09PM
paul s said...
"..time to get hammered." You buying, Jim?
7-13-2009 @ 3:05PM
Iridium said...
But we must remember that once you account for the earnings fraud, Alcoa actually missed earnings by quite a bit.
A company decided to not file restructuring losses on this quarters report and therefore beat earnings. If you inlcude them they missed earnings.
Isn't Wall Street great. I wish I could do this with my taxes. Well I'm not including half of my pay this year so I don't owe you all that money. In fact you have to give hlaf of what you took back to me.