Does CIT Deserve a Bailout?
Ron Rowland This week’s action brought the S&P 500 back up to the middle of its 2 ½ month trading range and back above the key 50-day and 200-day moving averages. On the other hand, today’s high also brings the index to short-term resistance in the 930-932 area. Some consolidation may be necessary if a breakout is to be sustained. Corporate earnings reports look bullish so far, or at least are being spun that way in the media. Year-over-year comparisons are dismal but investors are looking ahead to the future. To no great surprise, Goldman Sachs (GS) reported yet another monster quarter. Johnson & Johnson (JNJ) topped estimates because consumers are buying more Listerine mouthwash and Neutrogena skin cleansers. We suspect this represents a switch away from premium brands in favor of J&J’s supermarket distribution channel. Growth forecasts at Intel (INTC), while impressive, also suggested newfound public frugality. Inexpensive “netbook” computers are all the rage and business technology
