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
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