Newsmakers like James River Coal (JRCC) are paying off
Today's Financial News - Posted October 30, 2008
There is some positive news hitting Wall Street today. Pay attention to the clues you are given and there are is huge profit potential. Already, shares of James River Coal (NASDAQ:JRCC) are soaring in value.
By Andrew Snyder
Baltimore – (TFN): This is a day worth celebrating. After weeks of report after report pointing to a “systemic” fall in the American economy, Wall Street is starting to realize the situation is not all that bad.
Maybe we can credit the government’s bailout. Maybe it is global interest rates cuts. Or maybe it is the power of the free market at work.
It does not matter what the history books will eventually show pulled us out of this mess (I choose the third option). All that matters is it appears the American economy is not as horrific as many folks would like you to think.
All we have to do is look at some of the economic data released this morning. First off, Wall Street’s gross domestic product (GDP) targets were way off track.
Good news inside bad news
Analysts expected a decline in total economic activity of 0.5% over the last three months. In reality, GDP dropped by just 0.3%. With the nation just about ready to entirely abandon the notion of investing or saving, this morning’s news is the best we could hope for.
The decline in GDP can be blamed on you and I, the American consumer. Collectively, we reduced our spending by 3.1 percent. The third-quarter decline represents the first cut in spending since 1991, and the largest drop since 1980.
While news of reduced consumer spending is never a sign of a strong economy, today’s figures are good news for Wall Street. The drop in spending is dramatically smaller than many analysts predicted.
Remember, many of the declines we have seen in the equities markets are due to drastically lowered fourth-quarter earnings estimates.
But now that we are more than a third of the way through the quarter, the outlook is starting to brighten. That is why we have seen such positive action on the street so far this week. Investors are fixing their mistakes.
Make money while nobody is looking
For proof that there is plenty of money to be made in the equities market, all you have to do is look at the four stocks I recommended earlier this week in my report about Blue Chips selling for penny stock prices.
All four of my picks are now up by double digits. One of them, James River Coal Company (NASDAQ:JRCC) is up by almost 30%. Discover Financial (NYSE:DFS) and Ford Motor (NYSE:F) are approaching 20% gains. And General Electric (NYSE:GE) even after its rumors of a lowered profit forecast is up by 10%.
If you have not read this free report yet, you need to do it right now.
All across the market, companies are making positive headlines.
I just love the news out of Exxon Mobil (NYSE:XOM) this morning. As if a $12 billion quarterly profit was not enough for the company, today the company posted a brand new record earnings figure of $14.83 billion.
I can imagine Nancy Pelosi and Barrack Obama dreaming of ways to tax the company to death over the next few years.
Even with today’s great news out of the company, the record earnings are going to come to an end. With oil prices less than half of what they were just a few months ago, Exxon’s fourth-quarter report will be much less inspiring for us capitalist-minded investors.
The market is currently well into positive territory. But investors are not celebrating the positive reports this morning or the Fed’s interest rate cut yesterday. Instead, they are celebrating the fact that traditional market movers like earnings report and growth data are once again ruling the market’s directions.
The threat of a major meltdown is almost entirely eradicated and it is back to business as usual for investors. That is the best news in a long time.
Next Article: Airline industry finds some wings
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