Economics, Earnings and Europe
Economic reports, earnings and Europe drive volatile action in the Dow Jones Industrials (AMEX: DIA)
Economic reports were mostly negative this morning as the August Case/Shiller Index reported further year over year declines in home prices of -3.8% from August, 2010 versus a -3.5% forecast as the troubled real estate sector (AMEX: IYR) continues to founder.
October Consumer Confidence declined to 39.8 compared to a 46.4 previous reading which is the lowest since the bottom of the financial crisis in March, 2009. Readings of 90 or higher can be expected during “good” times.
October Richmond Federal Reserve index remained flat at -6.0, also in contraction territory.
Earnings reports makng headlines today were Netflix (NASDAQ: NFLX) getting pounded by more than 30% after a poor earnings forecast and reports of a plunding subscriber base. UPS, an important member of the Transportation Sector sees modest growth ahead and the company's CEO says he's more optimistic than he was a few months ago.
But the big news remains Europe (AMEX: IVE) as leaders struggle to contain the seemingly never ending debt crisis. Multiple disagreements remain as tomorrow's all important summit looms.
Bottom Line: Everything depends on Europe.
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