Thursday, January 27, 2011

AMZN May Be Key

The indices didn't make much progress today, but the overall the action was upbeat. Retailers, chipmakers and regional banks led while steel reversed after a big day yesterday and gold got slammed once again. The soft spot in this market today was oil and commodity-related names, but strength in tech made up for it.

Speaking of technology, the maker of that bug-proof software known as Windows accidentally released its earnings before the closing bell. MSFT spiked initially on strong numbers but came back in very fast on talk of slowing computer sales. It is now trading below the levels it was at prior to the news.

AMZN's numbers are out, and the stock it is getting smoked due to weak margins and poor guidance. The report is a few cents ahead of expectations, but expectations where very high these numbers don't look nearly good enough to bring in new money.

This market has done a great job of shaking off any and all negativity, but we have some more now and it might become more difficult for the market to continue down the same road.

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