每日市场点评 - Oct 19, 2007

As if the market wants to remind investors of what was happening 20 years ago on this Oct 19th, it has its bloodiest day for more than 1 month with Dow currently down more than 350 points. The VIX shot up by more than 10% and now is sitting above 20. Renewed worries in the credit market along with several disappointing earnings from Dow components this morning overwhelmed the strong results from Google. Since we are almost halfway through the earning season, it\'s worth taking a few minutes reviewing what\'s happening so far. Overall, the earning results can be divided into two groups: anything that is associated with the US housing market is doing terrible while most tech stocks are delivering good results. This shouldn\'t be surprising at all given what has happened during past few months and I believe the financial markets have already priced in most of these results. However, as I mentioned earlier, the guidance is a key to determine whether the market can continue its run and that appears to be somewhat problematic. There are probably equal numbers of downwards guidance vs. upwards ones and certainly that is running against the double digit growth for Q4 expected by the Wall Street entering this earning season. Dow is down five days in a row and the US dollar is hitting historical lows against several major currencies right before the G-7 meeting held this weekend. It\'s not surprising that given the uncertainty and disappointing perspective, some investors chose to move some chips off the table but it remains to see whether we are going to experience another Black Monday on next Monday.