Morning Journal--The austerity quandary

 News on Stocks in Our Portfolios

 

Sherwin Williams (SHW): Q3 EPS of $2.24 beats by $0.04. Revenue of $2.6B (+4.8% Y/Y) misses by $60M. Shares +0.5% premarket.

ConocoPhillips (COP): Q3 EPS of $1.44 beats by $0.31. Shares +1% premarket.

Reliance Steel & Aluminum (RS): Q3 EPS of $1.30 beats by $0.11. Revenue of $2.06B (+% Y/Y) misses by $40M. Shares +2.5% premarket.

Rockwell Collins (COL): FQ4 EPS of $1.32 beats by $0.19.

Quality Systems (QSII): Q3 EPS of $0.26 misses by $0.02. Revenue of $116.1M (+7.9% Y/Y) misses by $3M.

Economics

   This Week’s Data

            Initial third quarter GDP was reported at up 2.0% versus expectations of up 1.9%.

           

   Other

            The austerity quandary (medium):

            http://rpseawright.wordpress.com/2012/10/24/the-austerity-quandary/

            Household deleveraging is paying off (short/medium):

            http://pragcap.com/household-de-leveraging-light-at-the-end-of-the-tunnel

            Part of the deleveraging debt repudiation: charge offs and delinquency rates (short):

            http://www.ritholtz.com/blog/2012/10/charge-off-and-delinquency-rates-all-banks-seasonally-adjusted/

Politics

  Domestic

Why Romney is wrong on China (medium):

http://www.aei-ideas.org/2012/10/china-manipulates-its-currency-to-our-advantage-saving-americans-billions-of-dollars-why-should-we-complain/

George Will on the current state of politics (medium and a must read):

http://www.jewishworldreview.com/cols/will102012.php3

Wall Street wins no matter who is elected (long but another must read):

http://www.zerohedge.com/news/2012-10-25/guest-post-election-was-over-wall-street-won

  International War Against Radical Islam

            US policy on terror (medium):

            http://www.nationalreview.com/articles/331542/letting-our-enemies-get-away-murder-clifford-d-may