Market Shrugging Off Series of Disappointing Earnings Reports

Scott Redler |

Earnings season remains in focus as well with two more financial titans reporting this morning. Bank of America (BAC) swung to a profit ($0.56/share) after a $0.77/share loss in the year ago period. One time profits accounted for much of the turnaround, which included $3.6b in sales of shares in China Construction Bank.

Goldman Sachs (GS) continues its fall from grace with a bigger than expected net-loss this quarter. The company lost $393 million, or $0.84/share, versus expectations of a $0.07/share loss. That also compares to a profit of $1.74b ($2.98/share) in the year ago period.

Shares in both BAC and GS traded lower initially, but are rallying in the aftermath of their reports.

Shoe-maker Crocs (CROX) has long been a market darling, but that changed in a big way after the close yesterday as the company cut its quarterly forecasts. The stock has lost more than a third of its value so far, dropping from a price of $26.64 after the close to as $17 and change.

International Business Machines (IBM) had a decent report, but apparently the street wanted more. The stock is off more than 4%. VMWare (VMW) was also struggling after its report last night, but has rallied back to positive territory.

Overall, it was not an impressive 24 hours for earnings, but the market seems to be taking the results in stride. Perhaps investors are more looking forward to Apple (AAPL) earnings after the close, which are again expected to be blockbuster. The company has also sold 4 million new iPhone 4S's in its first three days, easily setting records and setting the stage for continued earnings growth.

*DISCLOSURES: Scott Redler has no positions

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