Adobe Looks Dicey Into Earnings
It's tough to tell what's weighing on stocks these days. At this point, the "fiscal cliff" is just the "go-to" story any time stocks are heading lower. But here the market sits, struggling, a day after the Federal Reserve promised quantitative easing for as far as the eye could see. Fed chief Ben Bernanke has said all along that there are still bullets he can use, but no one mentioned these would be fired from a paintball gun. I will say this: I thought it was bold and beneficial for Bernanke to say the Fed has no answer regarding what should be done if the U.S. goes over the fiscal cliff. The responsibility is all on the politicians in Washington now.
Still, traders and investors must move -- and I am currently watching Adobe Systems (ADBE), which is scheduled to report earnings Thursday night. The valuation isn't outrageous by any notion, but I don't like the stock into this report. I expect the company to be conservative with its guidance, and for this to weigh on the stock. The technical picture seems challenging, as well, and it appears a pullback into the low-$33 range is a distinct possibility....311 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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