exxon-profits-and-climate-chanOne of the key indicators for today’s open was XOM’s earnings, and despite missing analysts’ earning expectation by $100M the stock is trading up in premarket.  The DOW future, 15 minutes before the open, is now trading up over +100 points.

So what does this tell us?  The Street has extremely low expectations for the 1Q earnings reports.  It’s clear that all the major corporations wrote down their income projections and derivatives positions more than market value by end of 2008 so as the new fiscal year began, they’d be hitting the ground running in the race back to profitability.

Combine the low earnings expectations and FOMC’s encouraging statement yesterday saying that they see the current recession easing, it’s almost a slam dunk that the market low of 6,500 early this year was the bottom.  But just be cautious about the next shoe to drop, it hasn’t ever materialized even though most experts were expecting it.

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