China looks to a market rebound by the end of the year-WSJ
It’s not likely to happen this month, but some market strategists looking at China believe the worst will be over by the end of the year leading to a rebound, according to the Wall Street Journal’s “Heard in Asia”. “Going forward, the markets will remain sensitive to changes in macroeconomic data,” says Jing Ulrich, chairman for China equities at J.P. Morgan Chase. “But with many large-cap blue-chip stocks now trading at attractive valuations and the possibility of targeted, pro-growth policies from the government in the second half of the year, investors may start to see value re-emerging.”
Credit markets will settle down when housing prices stabilize-WSJ
Reminder to investors pumped by the recent stock market rally: The credit markets will not calm down until housing prices stabilize. And it won’t be happening anytime soon, according to the Wall Street Journal’s “Heard on the Street”. That point was driven home again when J.P. Morgan Chase (JPM) said they may have $1.5B in mortgage-related losses in the third quarter. Also, two well-known analysts downgraded Goldman Sachs Group (GS).
U.S. equity futures are lower
U.S. equity futures are now lower after Deere & Co. (DE) reported their quarterly earnings which missed Wall Street’s estimates for earnings even thought they reported better than expected revenue. Their shares are now down more than -9.0% in pre-market trading. The earnings miss affected the futures as they dropped after the report. Oil continues to trade slightly higher in front of the DOE report due out later today. The advanced retail sales figure for July was released and came in down -0.1% versus an expected decrease of -0.4%. Taking food and energy out of the equation, and it becomes an increase of 0.4% versus an expected increase 0.4%. The report had a slightly negative effect on the futures.
Russia trying to encircle Georgian Capital, Georgian press reports-DJ
Deere-DE reports Q3 EPS $1.32 vs. consensus of $1.36
Reports Q3 revenue $7.74B vs. consensus of $7.23B.
Deere-DE: Bearish Pennant in Progress
There is a bearish pennant now in progress that has downside potential to the $50 area over time. The pattern would no longer be valid on a breakout back above $66. Support levels to watch as potential downside objectives are at $62.82, $61.70, $59.28, $58.25, $57.36, $56.50, $53.95, $52.74, $51.77, $50.70. Resistance is at $63.94, $66.28.
Nvidia-NVDA: Believe company’s recovery will take time@KBRO
After Nvidia reported lower than expected Q2 revenue, Kaufman Bros. thinks the company will recover slowly, given its below seasonal guidance. However, the firm does not expect the stock to drop significantly, and they maintained their Hold rating.
Internet: See great buying opportunities for GOOG, AMZN, and PCLN@BOFA
BofA said GOOG, AMZN, and PCLN are the best positioned to take share in secular growth opportunities.
Apple-AAPL on pace to beat Sept. Qtr iPhone unit estimate of 4.1M@PIPR
Following checks, Piper raised its September quarter iPhone unit sales estimate to 4.47M from 4.1M. Shares are Buy rated.
Auxilium Pharmaceuticals-AUXL initiated with a Buy, target $49@CSTI
Collins Stewart is positive on AUXL’s Xiaflex opportunity.
Nvidia-NVDA: Company still has solid long-term outlook@OPCO
After Nvidia said it would only have slight revenue growth and margin improvement over the next couple of quarters, Oppenheimer believes the company will recover over the long-term, and they would be buyers of the shares. The firm thinks the stock has a compelling risk/reward ratio.
Canadian Solar-CSIQ reports Q2 EPS 78c vs. consensus of 47c
Reports Q2 revenue $212.6M vs. consensus of $206.8M.
Canadian Solar-CSIQ sees Q3 revenue $245M-$255M vs.
