Wednesday, July 7, 2010

No-News Day, So State Street Steps Up to the Plate

The overnight futures markets were lackluster, trending down. The S&P futures indicated a flat open. There was no major news, announcements scheduled to move the market, Treasury auctions this week were all short-term bills.

In short, it was going to be a muddle-through day at unchanged level at best, as some people started to say "this feels like 1929", others "this feels like 1932". (The former has also crossed my mind.)

Right on cue, State Street Corp (SST) came out with the earning pre-announcement, and the stock market decided to take the "news" and run higher.

State Street is scheduled to formally report on July 20th.

I think I've seen this trick of pre-announcing the earnings before, when the stock market was in a very precarious condition (September 2008 - March 2009) in an attempt to halt the slide of the stock of the announcing company or of the general market (here and here for example).


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