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Wednesday, October 14, 2009

JPM, Intel Ignite Markets, Fed Affirms

As a Q3 positive earnings season rolls on, JPMorgan Chase and Intel ignited the markets on Wednesday. Later in the day, minutes from the Fed's most recent meeting reaffirmed our convictions that this recovery indeed will be strong and prolonged.

Intel reported third quarter revenue of $9.4 Billion which represents the largest second to third quarter growth in over 30 years. You will remember that earlier in the year Intel was one of the first firms to invest significantly during the downturn, continue to forecast recovery in 2009, and further downplay any notions that a recovery would be lackluster and bumpy. So far, their forecasts have be right on target.

JPMorgan, the first of the big banks to release earnings for Q3, reported a $3.59 billion profit. In a significant trend reversal, the company said for the second straight quarter there are actually now signs of stabilization in delinquencies among its consumer loans.

And as the markets continued their steep drive higher, the minutes of the two-day Federal Reserve FOMC meeting that concluded Sept. 23 were released. They contained the most explicit statement yet from the Committee that it now firmly believes the recession that started in December 2007 is over.

According to the minutes: "Many participants noted that since August, they had revised up their projections for the second half of 2009 and for subsequent years."

Like Q2, Q3 results continue to surprise, surprise, surprise.

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