Morning Journal--Social breakdown and financial stress in Europe

News on Stocks in Our Portfolios

ADT beats by $0.09, beats on revenue

·                                 ADT (ADT): FQ3 EPS of $0.53 beats by $0.09.

·                                 Revenue of $833M (+2.3% Y/Y) beats by $2.78M

ONEOK Partners beats by $0.06.

·                                 ONEOK Partners (OKS): Q2 EPS of $0.62 beats by $0.06

Ecolab beats by $0.02, misses on revenue

·                                 Ecolab (ECL): Q2 EPS of $0.86 beats by $0.02.

·                                 Revenue of $3.34B misses by $0.05B.

 

Economics

   This Week’s Data

            The International Council of Shopping Centers reported weekly sales of major retailers down 1.6% versus the prior week but up 2.2% versus the comparable period a year ago; Redbook Research reported month to date retail chain store sales up 3.2% versus the similar timeframe lat month and up 2.9% on a year over year basis.

            The Case Shiller home price index rose 1.0% month over month in May versus estimates of +1.3%

            http://www.calculatedriskblog.com/2013/07/case-shiller-comp-20-house-prices.html

            The July Conference Board’s index of consumer confidence came in at 80.3 versus forecasts of 81.0

            http://www.zerohedge.com/news/2013-07-30/consumer-confidence-slips-most-4-months-outlook-tumbles

                Weekly mortgage applications fell 3.7% while purchase applications declined 3.0%.

            http://www.calculatedriskblog.com/2013/07/mba-mortgage-applications-decrease-in.html

            The July ADP private payroll report showed a 200,000 gain in employment versus estimates of up 179,000.

http://www.calculatedriskblog.com/2013/07/adp-private-employment-increased-200000.html

            A confusing second quarter GDP report: it came in +1.7% versus expectations of +1.1; however, first quarter GDP was revised down from +1.8% to +1.1%.

                http://www.calculatedriskblog.com/2013/07/real-gdp-increased-17-annualized-in-q2.html

   Other

            Truck tonnage remains strong (short):

            http://scottgrannis.blogspot.com/2013/07/stocks-track-truck-tonnage.html

            More on Japan’s record debt (short):

            http://www.zerohedge.com/news/2013-07-31/doubling-down-all-spot-somewhat-odd-one-out

            ***over night, EU employment data improved while German retail sales were short of forecasts.

Politics

  Domestic

  International

            James Galbraith on the social breakdown and financial stress in Europe (a bit long, but a must read):

            http://www.nakedcapitalism.com/2013/07/james-galbraith-on-social-breakdown-and-financial-stress-in-europe-and-why-the-word-stimulus-needs-to-be-banned.html

            Al Qaeda reborn (medium):

            http://www.weeklystandard.com/author/stephen-f.-hayes