The drama of the Fiscal Cliff and the recent sequestration circus, plus the trials and tribulations of these four countries (which have run up huge deficits) have been well documented and known for quite some time. What is more important, in my opinion, is not the size of the debt which is staggering, but rather what is happening in the market and the market's perception of current events.
Market perception trumps everything else out there. Market perception trumps market fundamentals every time. Market perception is the one card that the government cannot control. It is the card that can potentially give the individual trader an edge.
Markets are ending the month of February in an upbeat fashion today, albeit subdued. The Dow Jones industrial average is within striking distance of its all-time record high, despite the prospect of sequestration.
Big-name companies reported higher quarterly earnings, along with some big-time misses today which is leading to a mixed market. We'll take a look at two of the big-time misses, Groupon Inc (GRPN) and JC Penney (JCP).
The government reported that the jobless claims are falling and that the economy is doing better than last year so far in the first quarter. However, Washington's budget battle has cast a shadow over the market, with spending cuts set to automatically kick in Friday and no sign that the two political parties might work out their differences beforehand. Continue reading "Today's Video Newsletter: Sequestration Showdown Looms Large"→
Groupon plunged 30 percent before Thursday's opening bell, after posting a larger-than-expected fourth quarter net loss.
The company issued a weaker-than-expected revenue guidance, feeding the belief of some on Wall Street that people have tired of the myriad of online restaurant, spa and Botox deals that Groupon offers.