By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – I love earning season. No more words, just the facts. This is how much was made or this is how much was lost. We can determine how well analysts did in predicting how well a company was doing. Were their recommendations right and were they warranted? So as the season winds down, investors should be pleased to know that earnings are 14% above expectations. That means analysts were a little more conservative on their outlook. That's a healthy sign. They know everyone is watching. Is the stock they're recommending worth the value? If this continues and one has been standing on the sidelines, one might be tempted to test the waters.
If that's the case, you should be aware that insider selling is high. According to information compiled by Bloomberg News, company executives above a certain rank are selling the stock in their company. By SEC rules, they have to make any trade public ahead of time. So there is going to be about $1.8 billion of stock being sold and only $10.8 million of stock being bought by the corporate upper echelon.
Washington still can't come to any common ground on the tax cut. Is there even going to be one? I don't care anymore. I am not adjusting my spending or savings on this cut to be. Besides, Texas has a little problem and they're probably going to have to raise my taxes.
And 54 economists surveyed online by the Wall Street Journal have scaled back their forecast for the economy. Growth will be only moderate all the way through the first half of the 2004. And since economists have been wrong all year, let's hope this isn't the prediction that breaks their record.
Happy Mother's Day and go, Mavericks! For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m.
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