Earnings season got off to a somewhat rocky start.
Revenue misses from Alcoa and Bank of America drove the S&P 500 below
the 50-day moving average and even briefly below the important
support/resistance area of 1,301.
When revenues fall, investors interpret it as a
sign that demand is weak and, therefore, that the recovery is losing
Fortunately, Intel (Nasdaq:INTC) and other tech
stocks posted stellar numbers during the second week of earnings and
quickly stamped out the bearish “slowing demand” fears. The S&P has
rallied 53 points since the intra-day low at 1,294 on Wednesday, April