Ahead of Wall Street - November 22, 2011 - Ahead of Wall Street

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This is Mark Vickery, substituting for Sheraz Mian while he is away.

November 22, 2011

This morning, the first revision to gross domestic product ( GDP ) for the 3rd quarter of 2011 fell from 2.5% to 2.0%. Not a good headline number, for sure, but beneath it lie some pretty decent developments -- relatively speaking, of course.

Most revisions were for a tenth of a point or so -- negligible, especially considering there is a final revision on these numbers at this time next month -- but the one big downward revision was from the place that could most afford a downward revision: business investment. This has been the tug-boat dragging the economy off the sandbar, so you don't really want to see a downward revision here, but really -- down to 14.8% from 16.3% is not too bad.

Exports were up on the revision, to 4.3% from 4.0%, and imports fell from up 1.9% to up 0.5%. Take from this negative headline what you will, but it usually pays to check the fine print.

In earnings news, after the bell yesterday Hewlett-Packard ( HPQ ) beat estimates, but revised down for the 1st quarter of 2012. This was CEO Meg Whitman's first earnings report since taking the helm from Leo Apotheker, so she is -- and should be -- being given some time to turn around the aircraft carrier that is H-P. Campbell Soup ( CPB ) also dipped after the bell yesterday.

This morning, JA Solar ( JASO ) swung to a loss in its 3rd quarter, as did Canadian Solar ( CSIQ ) , LDK Solar (LDK) and Suntech Power (STP) . Things are looking pretty cloudy for the solar market these days, but honestly -- is anyone invested in this space purely for the short-term?

Jefferies Group (JEF) has slashed its holdings in European securities by 50%, and Spanish 3-month notes have doubled. The European financial saga will not take Thanksgiving off, either, so don't expect much near-term relief on this front, either.

And...the U.S. congressional "super-committee" is still nowhere -- what a shocker! Might the problem be a lack of phone booths for members to change into their capes?

Mark Vickery
zacks.com


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , US Markets

Referenced Stocks: CPB , CSIQ , GDP , HPQ , JASO

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