logo
  Join        Login             Stock Quote

Daily State Of The Markets: Get It Off The Books!

 March 21, 2012 09:19 AM
 


Good Morning. The news greeting investors on Tuesday morning clearly wasn't good. There were problems in China, which in turn, meant problems for the global growth thesis. There were new worries about Greece (I know, how the heck is that possible?). There was a lot of chatter about Portugal becoming the next Greece and that EU leaders had best deal with this quickly before another round of debt restructuring begins. And with Shanghai, Hong Kong, and most of the European bourses down more than 1%, it looked like the bears might finally get back in the game yesterday.

Since China is the second biggest economy on the planet and the biggest consumer of energy in the world, any and all data relating to the growth outlook for the Chinese clearly warrants some attention. So let's run these stories down. First, there was word that China had increased gasoline and diesel fuel costs to its citizens. This caused concern about inflation and slower growth. Next there was a report that the Chinese equivalent of "corporate profits" had fallen for a second month in a row. Then there was deputy secretary general of the China Association of Automobile Manufacturers, who said that Chinese vehicle sales are likely to miss their 8% growth target in 2012. There were even rumors on various blogs regarding a possible coup in Beijing.

[Related -Fusion-IO, Inc. (FIO): Can Fusion-IO Q2 Results Cheer Street?]

But the story that got the most attention was a PowerPoint slide in a BHP Billiton presentation. BHP, which is the world's biggest mining company, said in its presentation yesterday that growth in China's demand for iron ore will fall "to single digits, if it is not already there" as steel production is slowing and growth rates have flattened. Ian Ashby, the company's president of iron ore, also told reporters that "The big infrastructure build clearly will come to some end." Yikes, that can't be good, right?

[Related -Google Inc (GOOG): Why Nest Labs Deal Is A Wakeup Call For Apple Inc.?]

In addition to all the less than cheerful news out of China and Europe, a fairly strong earthquake rocked the shores of Mexico City. There was a report that the good data in the U.S. economy can be attributed to the record warmth we've enjoyed so far in the spring, which, of course, has caused consumers to speed up their consumption. In case you're not sure where this logic is heading, this means that demand has been "pulled forward" and as a result, the economy will surely stumble going forward.

And what would a day be without some news relating to Apple? Late in the session yesterday, we got a report that the third generation of the iPad, with its amazing retina display and faster processor gets hotter than the last version.


Next Page >>12
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageQihoo 360 Technology Co Ltd. (QIHU) Q2 Earnings Preview: A Green Monday

Qihoo 360 Technology Co Ltd. (NYSE:QIHU) will report its second quarter 2014 financial results on Monday, read on...

article imageSix Stocks that Could Outperform in the next 90 days

Earlier today, Goldman Sachs put out its list of the 50 stocks that Matter Most. It’s a list of the 50 read on...

article imageFoot Locker, Inc. (FL) Q2 Earnings Preview: Running Past the Street View

Foot Locker, Inc. (NYSE:FL) plans to report financial results for its second quarter ended August 2, 2014 read on...

article imageRoss Stores, Inc. (ROST) Q2 Earnings Preview: Could Be Better Than Expected

Ross Stores, Inc. (NASDAQ:ROST) will announce its second quarter 2014 earnings results on Thursday, August read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.