FRIDAY JULY 9, 2010

Something to look forward to?

The market posted a nice 5.1% rally this week, at least temporarily stepping away from the edge.  Not much has occurred this week to explain the swing in sentiment from last week's pessimism.


Perhaps the market is looking forward to the beginning of 2nd quarter earnings season.  With interest rates low, energy prices stable and a lean labor force, the forecast is for a strong earning reports from Corporate America.  And it won't take long to find out if the forecasts are accurate.  Bellwether stocks General Electric (GE), Intel (INTC) and Bank of America (BAC) all report earnings next week.  These three companies provide a broad view of the economy and their earning reports should shed some light on the state of the economy.  Perhaps the positive market this week is an indication that the market may not believe the doomsday headlines about the economy.  After the strong 2nd quarter sell-off, a strong earnings season could provide the pivot point for the stock market.

POSTED AT 1899-12-30 15:51:00.0

KEN ENTENMANN, CFA
SENIOR VICE PRESIDENT AND
THE DIRECTOR OF INVESTMENT MANAGEMENT SERVICES

Ken is a Senior Vice President and the Director of the Trust and Investment Services at Alliance Bank, N.A. He has 23 years of investment experience and oversees the management of assets totaling $1 billion. He holds a B.S. in Applied Economics and Business Management from Cornell University and an M.B.A. from the William E. Simon Graduate School of Business Administration at the University of Rochester. He has also earned his Chartered Financial Analyst designation. He is a member of the Executive Committee of the Trust Division of the New York Banker's Association. He is also a director of the Central New York Community Foundation.

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The opinions expressed here do not represent the views of Alliance Financial Corporation and Alliance Bank, N.A. This communication is not an offer or solicitation for the purchase or sale of any security, is for general informational purposes only and does not provide personalized investment advice. When making personal investment decisions you should consult your investment adviser or rely on your own research. Copyright 2008.