19 Oct Cautiously Floating
Google had a rough day yesterday, with their missed earnings announcement mistakenly being prematurely released. Afterwards, Google shares plunged 9% before trading was halted on the Nasdaq. Given that the price was $750 per share, a 10% drop is a significant loss. McDonalds also announced earnings, showing a greater contraction than expected. Apparently the people surveyed for Consumer Confidence don’t eat at McDonalds… Existing Home Sales for September were reported lower than August, but still 11% higher from a year ago. All the news has the Dow lower by 100 points at the moment, whilemortgage bonds are getting a bit of a lift after their sharp move lower the last 2 weeks. Interest rates correlated by hitting their all time lows about 2 weeks ago, but have continued to move steadily higher since then. We start the day with a cautious floating bias, with the realization that there will likely be great volatility.