Some days start better than others, that’s for sure.
- Global equities slumped as China car sales unexpectedly shrank for the first time in eight months.
- The International Monetary Fund said European banks may need to shrink assets if policy makers fall short of pledges to stem the fiscal crisis.
- The IMF reduced estimates for global economic growth.
- Third-quarter profits and sales for companies in the S&P 500 probably fell in unison for the first time in three years.
I don’t know about you, but I feel like laying down in a landfill on garbage collection day. The above news is not the whole reason. One should absorb the weak data, conjecture, and economists spouting off about future GDP growth to understand the whole picture. No, the reason I feel like laying down in a landfill is the flow of non-news is overwhelming.
Imagine, for a moment, a supposedly credible financial news source (CNBC) puts as its headline piece an article titled, “CEO to Workers: You’ll Likely Be Fired If Obama Is Re-elected.” Hard to imagine, right? I mean, after all, doesn’t CNBC have some serious issues it could explore in the financial world? Shouldn’t Chinese economic data, IMF predictions, or speculation about the coming earnings reports rank higher on the news scale?
I am not pushing either dog in the US presidential race for the rabbit. I am saying the headline is an example of how the US media pushes the controversial, titillating, and fearful. Sorry about the rant, but we who look to the financial media for news deserve better than a hack piece pushing an arrogant rich person’s ideological or political agenda …
Anyway, the economic/financial news out there these days is predominantly on the negative side, so, as it is my mission, I bring to you points of light in an otherwise darkening environment. Despite the fear, and the relentless push to sell that fear, we still have to a) make our money work and b) remember, this is not 2008, at least not yet.
- U.S. wholesale inventories rose as expected in August while sales at wholesalers posted the first gain in four months. Sales gains in August were widespread, with furniture up by 1.1 percent and machinery advancing 0.5 percent. Petroleum sales rose 5.6 percent and auto sales were up by 2 percent.
- For the period ended Sept. 2, Costco earned $609 million, or $1.39 per share. That compares with $478 million, or $1.08 per share, a year earlier. Revenue increased 14 percent to $32.22 billion from $28.18 billion as sales improved. Costco said that its full-year net income rose 17 percent to $1.71 billion.
- Steel and iron ore stocks are showing strength as a group. This follows yesterday’s news that iron ore prices in China rose 6% to $110.40/ton. Separately, Daily News & Analysis reported late yesterday that iron ore prices are expected to rise moderately due to the recent Indian Supreme Court order banning complete mining activities in Goa from Friday. Bloomberg reported China may demand an additional 45-55 million metric tons of iron ore in 2013.
Trade in the day; Invest in your life …
