D&D Note (7-13-2012)
JPMorgan Chase (JPM) reported earnings today, and despite their $5.8 Billion trading loss, the bank released better-than-expected earnings for the second quarter. Shares rose almost 6% on the day. The JPMorgan earnings helped boost all most all stocks on the day including the other major U.S. banks.
The slowdown in China shouldn’t surprise investors, rather confirm what we already know and have known for some time. The second quarter GDP for the People’s Republic grew at 7.6%. While this does represent the lowest rate in three years and down from 8.1% in the previous quarter, most any other country in the world would be glad to have a GDP growth rate of above 7%. The third quarter should see a rebound in GDP for China and should end the year somewhere between 7 – 8% which will be just enough to keep the world economic machine moving forward.
Investors also cheered the dovish comments by the Atlanta FED President Dennis Lockhart, saying that further stimulus could be coming down the line.
One stock that was down today is Facebook (FB). Shares have now fallen four days in a row. Today the stock was down -0.36% at $30.70 a share. Once the stock falls below $30 it will become much more attractive, keeping in mind a real pricing of the stock on fundamentals would put it around $19 a share.
The DOW (INDU) gained 204 point at 1.62%. The S&P (SPX) rose 22 points at 1.65% putting the index at 1,356.77. The Nasdaq (COMP) added 42 points at 1.48%.
Oil rose $1.02 to $87.10 a barrel.
Gold rose $26.70 to close at $1,592.00 an ounce.
The 10-Year Note fell on this risk on day pushing the yield up to 1.50% from 1.48% yesterday.
Next week D&D will be tracking closely the following companies that report earnings:
Citigroup (C ) – July 16th
Goldman Sachs (GS) – July 17th
CSX (CSX) – July 17th
Intel (INTC) – July 17th
Yahoo! (YHOO) – July 17th
Abbott Labs (ABT) – July 18th
Bank Of America (BAC) – July 18th
American Express (AXP) – July 18th
F5 Networks (FFIV) – July 18th
IBM (IBM) – July 18th
Qualcomm (QCOM) – July 18th
Skyworks (SWKS) – July 18th
YUM! Brands (YUM) – July 18th
Fifth Third (FITB) – July 19th
Freeport-McMoRan (FCX) – July 19th
Huntington Banc (HBAN) – July 19th
Morgan Stanley (MS) – July 19th
Nokia (NOK) – July 19th
Philip Morris International (PM) – July 19th
Taiwan Semiconductors (TSM) – July 19th
Union Pacific (UNP) – July 19th
Verizon (VZ) – July 19th
Advanced Micro Devices (AMD) – July 19th
Chipotle Mexican Grill (CMG) – July 19th
Google (GOOG) – July 19th
Microsoft (MSFT) – July 19th
First Horizon (FHN) – July 20th
General Electric (GE) – July 20th
Schlumberger (SLB) – July 20th
SunTrust Banks (STI) – July 20th
Discussion
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