USIR Weekly Update Hotline
For Monday, October
Earnings Season Begins
the events affecting stock prices, earnings per share have by far
the greatest on-going impact. And this week, third quarter earnings reports and
near-term guidance begin in earnest. With stocks coming off a strong upswing
since mid-August, this brings an element of uncertainty to the market until we
see how the quarterly reports are trending. Expectations are generally upbeat.
broad-market S&P 500 closed Friday at 2549, up from an August low 2417,
capping a13.9% gain year to date. The tech-weighted Nasdaq Composite ended last
week at 6590, up from 6177 in August and ahead a stellar 22.4% for the year.
Both indexes, however, experienced declines in trading volume late last week,
suggesting that institutions, with a great year under their belts, are taking a
wait-and-see attitude toward the upcoming earnings reports.
our mid-October issue in the week ahead. Meantime, in the USIR Growth
Portfolios, we are concentrating on the positions held in the September
issueabetted by the four stocks added to the under-invested Emerging Growth
Portfolio in last weeks update hotlinenamely, chipmakers Brooks Automation (BRKS) and
FormFactor Inc. (FORM) and electronic systems providers Teradyne (TER) and Control4 Corp (CTRL).
W. Quickel, Editor