On Monday two more signals pointed to a stronger Q3 than many are expecting.The behemoth credit card issuer JPMorgan Chase reported that its bad debt charge-off numbers have now falling for two months in a row. Not surprising as the unemployment rate has now peaked for this cycle and is now on its way down, unsecured loan defaults are decreasing as well. Other large plastic issuers have reported similar declines in such charge-offs. Even more noteworthy was the spike up in the NY Empire State Manufacturing Index reported Monday. You may recall the "giant sucking sound" lurking below the Empire readings earlier in the year. Those sounds are no longer lurking as the general business conditions index spiked by 13 points in July, to +12.1, its highest level since November of 2007. If the upward spiking trend continues into Aug and Sept, by the time the quarter closes, business conditions in the NY region will be at positive levels not seen for over ten years -- no doubt leading to surprisingly strong Q3 in manufacturing for the NY region.
U.S. stocks are poised to join a worldwide rebound from Monday's big selloff. Stock index futures are moderately higher Tuesday, following the lead of overseas markets that are rising in part on upbeat economic news from Germany. A research institute has reported that consumer confidence is rising in the country, Europe's largest economy. (More good signs) and it did yesterday with the DJIA up again 80+ points.
ATLANTA (Aug. 18) - The Atlanta-based company earned $1.12 billion, or 66 cents per share, compared with $1.2 billion, or 71 cents per share, a year earlier, topping analysts' forecasts for 59 cents per share. Home Depot Inc. lifted its full-year earnings from continuing operations forecast to flat to up 7 percent. (A good sign.....home construction and profits are going in right direction)
Hewlett-Packard beats third-quarter earnings expectations by a penny, offering another positive sign of a possible rebound in the technology market. (Yup more good.)
DETROIT -- General Motors Co. will increase North American production by 60,000 vehicles from earlier schedules through the rest of the year as it rebuilds inventories drained by the cash-for-clunkers program.GM's planned third-quarter output will be 535,000 units, a 35 percent increase over second-quarter totals. Fourth-quarter production will be at least 20 percent more than the third, said Mark LaNeve, vice president of U.S. sales, during a conference call today. "And it'll probably go up from there," he said. "Our dealers are clamoring for more vehicles in every segment."GM has about 360,000 units in U.S. inventory, compared with about 1.3 million units at this time of year just "a few years ago," LaNeve said. (Yeah, it all sounds great.....rocking and rolling)
TOKYO (Reuters) -- Toyota Motor Corp. is looking to end production at its California assembly plant in March, Japan's Asahi Shimbun reported. California lawmakers and Gov. Arnold Schwarzenegger have appealed to Toyota to save the San Francisco area plant and its 4,500 jobs. Analysts have said a closure of the money-losing factory, currently working at less than half its capacity, would help Toyota by raising utilization at its other underused factories. (hummm, I wonder how Liberal California is feeling about Toyota right now. Yikes they are getting a big let down from a Foreign Car company. Lets protect our country and National security by supporting our own Home grown and home owned car companies.)
WASHINGTON (Aug. 18) - Construction of new single-family homes rose for the fifth-straight month in July as more buyers walked into model homes ready to sign contracts, the Commerce Department said Tuesday.The pace of single-family home construction edged up almost 2 percent and building permits for future construction climbed nearly 6 percent. The confidence level in the industry this month is the highest in more than a year, the National Association of Home Builders said Monday. As homebuilders hire more workers to pour foundations and pave roads, they are providing some long-needed juice to the economy. With new construction up 37 percent from the bottom this winter, the housing industry this quarter is expected to give a small boost to the nation's economic output for the first time in 3 1/2 years."It's the general trend that matters and with housing, the direction is up," wrote Joel Naroff, president of Naroff Economic Advisors. (Uh, more good stuff to start the day.)
Quote for the day:
"It is the service we are not obliged to give that people value most." -James C. Penny
Have a great day........and spread good everywhere.
Do a good turn for someone today.
sy
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