The markets probably did not want to hear that GE would grow more slowly in 2007 than in 2006. But, that is exactly what they heard. GE reiterated that it would have EPS growth in 2006 of 15% to 16% for a range of $1.97 to $1.99 per share. But, in 2007 EPS growth will only be  0% to 13%.

GE’s stock has been flat this year, so the market already has some doubts about the compay’s prospcects. The stock staged a little pity rally on the news, moving up 1.5% to $35.75. Maybe investors were happy that it was not worse. Or, maybe it was because GE raised its dividend.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.