Morning Journal--The other recession indicator

 News on Stocks in Our Portfolios

Cummins beats by $0.04, beats on revenue

·         Cummins (NYSE:CMI): Q3 EPS of $2.32 beats by $0.04.

·         Revenue of $4.9B (+14.8% Y/Y) beats by $180M.

Sherwin Williams beats by $0.15, misses on revenue

• Sherwin Williams (NYSE:SHW): Q3 EPS of $3.35 beats by $0.15.
• Revenue of $3.15B (+10.5% Y/Y) misses by $20M.

Automatic Data Processing beats by $0.02, beats on revenue

·         Automatic Data Processing (NASDAQ:ADP): FQ1 EPS of $0.62 beats by $0.02.

·         Revenue of $2.57B (+8.9% Y/Y) beats by $20M.

Praxair misses by $0.01, misses on revenue

·         Praxair (NYSE:PX): Q3 EPS of $1.62 misses by $0.01.

·         Revenue of $3.14B (+4.3% Y/Y) misses by $30M.

Western Gas Partners beats by $0.01, misses on revenue

·         Western Gas Partners (NYSE:WES): Q3 EPS of $0.60 beats by $0.01.

·         Revenue of $346.5M (+24.6% Y/Y) misses by $2.19M.

C.H. Robinson Worldwide beats by $0.05, misses on revenue

·         C.H. Robinson Worldwide (NASDAQ:CHRW): Q3 EPS of $0.85 beats by $0.05.

·         Revenue of $3.47B (+4.5% Y/Y) misses by $30M

Economics

   This Week’s Data

        From Monday:

            The October Markit flash PMI came in at 57.3 versus expectations of 58.0.

            September pending home sales rose 0.3% versus estimates of up 0.8%.

            The October Dallas Fed manufacturing index was reported at 10.5 versus forecasts of 7.5.

         Yesterday:

            The International Council of Shopping Centers reported weekly sales of major retailer up 0.3% versus the prior week and up 3.8% on a year over year basis; Redbook Research reported month to date retail chain store sales up 0.3% versus the comparable period last month and up 4.4% versus the similar timeframe a year ago.

            September durable goods orders fell 1.3% versus expectations of +0.9%.

            http://www.advisorperspectives.com/dshort/updates/Durable-Goods-Real-Per-Capita.php

            The August Case Shiller home price index declined 0.1% versus estimates of +0.1%.

            October consumer confidence came in at 94.5 versus forecasts of 86.8.

            http://www.advisorperspectives.com/dshort/updates/Conference-Board-Consumer-Confidence-Index.php

                And: confidence inequality (short):

            http://www.bespokeinvest.com/thinkbig/2014/10/28/confidence-inequality.html

            The October Richmond Fed manufacturing index was reported at 20 versus an anticipated reading of 10.

   Other

            The other recession indicator (short):

                http://www.zerohedge.com/news/2014-10-28/other-recession-indicator-flashing-red