Momentum versus Economics

Momentum traders continue to drive stocks higher, regardless of what the economic data is.

The latest bit of Reality intruding into the party?  A warning from Lansdstar (LSTR), a $2.3B trucking company, which warned:

Landstar System CEO says lowers forecast for Q4 diluted EPS to between $0.44-$0.49/share, lowers Q4 revs to $620 mln and $635MLN – Reuters

Consensus is for Q4 EPS of $0.52 and revs of $697.5 mln.

That’s not exactly a horrific miss — its a range that might only be a few cents off from the prior expectations.

Here’s what it did to the Trannies:


Given the momentum into the market today — light volume notwithstanding — I wouldn’t be surprised if the market shakes it off and keeps going . . .

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