Grinding Our Way

Tobias Levkovich,Chief U.S. Equity Strategist at Citigroup,says the biggest discussion now is,the earnings are all cost-driven.We're also at a point where re-stocking must occur,driving increased production.We're gonna grind higher.We surveyed our clients,and cash positions have gone up from 12-16% by institutions,as of two weeks ago,despite the stock market run-up.CEOs will be very pedantic,cautious.When CEOs lack confidence,you should buy stocks.There's a great inverse relationship.
We're talking about de-stocking at a slower pace,as in cars,Mr.Levkovich noted.It will moderate,and probably eliminate,job losses.We think the industrial/commodity/energy complex will be leading,along with big financials and insurance,Mr.Levkovich revealed.

Genentech Reports

Genentech(DNA) reported earnings of 0.81 cents a share versus an estimate of 0.88.Revenue was 3.41 billion dollars versus an estimate of 3.36 billion.Its forecast for Q4 is 3.40-3.45 billion.Cowan and Company upgraded the stock from neutral to outperform.