Approximately 1/3 of all S&P companies report earnings this week. As we know, earnings announcements can temporarily affect stock prices. Case in point, IBM. Last week IBM reported what was interpreted to be "good" earnings and guidance. As a result the stock gapped up the next morning about 5%, from $146 to $150. The next day it was trading back at $146 and today it is trading at $145 and change. The two choices when dealing with earnings announcements are to exit prior to, or ignore. If you choose the latter, take some solace in the fact that you have a 50-50 chance of being on the right side of any earnings based price gaps. Fortunately, we have to deal with this conundrum only four times a year. Portfolio Earnings This Week 7/24: MMM (Before the Open) 7/24: BIIB (Before the Open) 7/26: LUV (Before the Open) 7/26: PENN (Before the Open)
