Stocks seem to be heading up again, based on earnings. But how could the earnings last if the economy deteriorates? Is this apparent strengthening bases on strengthened confidence, i.e. is the strenghtening based on the strengthening itself? At least I can't see facts supporting the strengthening.
Earnings are a short-term indicator.
Asian stocks seen rising on U.S. rally, earnings - MarketWatch: "Asian stocks seen rising on U.S. rally, earnings
By Moming Zhou, MarketWatch
Last Update: 7:42 PM ET Aug 2, 2007
SAN FRANCISCO (MarketWatch) -- Asian stocks are expected to edge higher Friday, following a second-day rally on Wall Street as upbeat earnings reports helped soften worries about credit woes.
'Asian equities are likely to get another boost from the ongoing recovery in the US equity markets,' said Marc Chandler, an analyst at Brown Brothers Harriman, in a note.
'A further recovery in the US equity markets and some further narrowing of some credit spreads has brought more calm to the market,' he said.
Chart of JP:1804610
September Futures for the Nikkei 225 Index (JP:1804610: news, chart, profile) last traded at 17,130 on the Chicago Mercantile Exchange, up from Thursday's close of 16,980 on the Osaka Stock Exchange and 16,995 on the Singapore Exchange, suggesting a strong start for their underlying measure on Friday.
New Zealand's NZX 50 index lost 0.36 points in Friday's early morning trading.
On Wall Street, stocks rallied for the third time this week after companies such as Starbucks Corp. and Walt Disney Co. reported bright earnings."
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