The Stocks of the larger companies headquartered in the Puget Sound region continue to perform quite nicely. It would appear that investors have confidence in the areas companies to do well moving forward. Unfortunately, the link between higher stock prices and a companies future economic performance has become shaky at best of late due to the flood of liquidity the Fed has been pouring into the marketplace. However, if higher stock prices do turn into enhanced future performance, all systems are go for the Puget Sound area.
Boeing reported earnings yesterday and got rave reviews from Wall Street. BA was rewarded with a 3% increase in the stock prices. It's too extended to jump in now, but the indicators suggest further upward movement in the stock. Boeing has enjoyed a 28% increase YTD in spite of the battery issues with the new Dreamliner. It appears that issue is being resolved clearing the way for future delieveries. I wouldn't anticipate many more layoffs than have already been announce.
Microsoft has caught fire this month. Improved earnings and word of increased Hedge Fund interest in the stock has vaulted the stock over 10% this month. MSFT is nearing a new 52 week high. I would anticipate that the stock needs to take a breather near term as it is getting quite over bought. A pullback near $30.25 would represent a nice entry price. MSFT's releases last year are starting to show up in their earnings. The recent release of Windows 8 for the mobile market has been slow out of the gate but represents further growth opportunities. An update to XBOX is due later this Spring. The stock price action suggest Microsoft will continue its hiring spree.
Amazon has spent most of the year consolidating. One more pullback to a confluence of the 50 day ema and prior support near $264 would be a wonderful opportunity. A stop at $258 would limit any damages. On the other hand, the stock looks more like to break north over $272. That should lead to a run at the previous high at $285. Bezos will most likely continue to leverage his stock price and follow thru with his buildout in South Lake Union. There appears to be no reason to slow Amazon from gobbling up new hires.
Costco broke to a new high yesterday. The indicators suggest that it has room to move. The minimum target is still $110. $104 turned out to be a great entry point when the 50 day ema, trendline support, prior high support and oversold indicators all came together.
Starbuck also hit a new high yesterday. The target remains at $63. A stop below $58.60 is appropriate. The indicators suggest the target is achievable.
Nordstroms is still below the 52 week high having been in a consolidation phase since last September. The stock has a good opportunity to move higher after bouncing off the 50 day ema last week. A better buy in point would be near $54 where trendline and 200 day ema support comes in to play. A break to a new high would target the low $60's.
If stock prices still reflect investors expectations for future growth, the Puget Sound area should be in a reasonably strong economic growth pattern during 2013.
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