GDP & Earnings...Who's Ready for Some Retail? - Analyst Blog
November 22 2011 - 4:25AM
Zacks
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 point 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 always 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 -- 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
CAMPBELL SOUP (CPB): Free Stock Analysis Report
CANADIAN SOLAR (CSIQ): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
JA SOLAR HOLDGS (JASO): Free Stock Analysis Report
JEFFERIES GP-NW (JEF): Free Stock Analysis Report
LDK SOLAR CO (LDK): Free Stock Analysis Report
SUNTECH PWR HLD (STP): Free Stock Analysis Report
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