A Market Midsummer Slow Day
Markets overall didn’t do much Thursday.
Inside markets some individual stocks and sectors experienced some good rotation but headlines won’t note that unless it’s about Facebook (FB). After all, that sells soap.
On the other hand we have the poster child for stock buybacks and its effect on earnings—Caterpillar (CAT).
ZIRP has given corporations the gift of cheap financing with which to buyback stocks. So when one of the featured players like CAT reports poor revenues but better earnings we see then how this works. Frankly, it’s the biggest positive for the stock market presently. As long as the Fed keeps giving corporations the gift of cheap money they can play the