In our Zig when others Zag “Friday Positive Fashion” we found many positives this week, so buckle up, and let’s review together:
Merkel the Muscle: AKA Angela Merkel, German Chancellor, flexed her muscles in the passing of a tough lower house vote to give greater support and power to the FSFC, an entity to help the EU countries solvency issues.
The First Trickle of Earnings Announcements looks ok: While we are very early in the earnings season AKA “90 day treadmill” our first look at company reports looks favorable. Our continued interest is how much the “lack of confidence markets” have seeped into investment decisions, both from a consumer level, and CFO level. So far so good !
Consumer Confidence Still Hanging In there: We view the lack of negative in consumer confidence as a positive. The longer we go without a major drop in confidence the better, in our opinion, as the initial dramatic market movements of early August become a memory. The longer term outlook also increased in this weeks Consumer numbers, leading to possible better times ahead.
Chicago PMI Surprises to Upside: Expectations for a 55 point reading on the Chicago area purchasing managers report were surpassed by an actual reading of 60. In the strongest report since April of this year, the Chicago PMI report may be pointing to accelerating purchases and may bode well for the ISM Report of next week. A surprisingly positive report overall.
Steve Liesman breaks positive Euro report News (Video): Liesman, an economist and financial commentator on CNBC, broke the news that the EU was beginning talks on funding, targeted for struggling EU countries. The story was a huge positive as it appeared talks had begun to falter and countries were headed to their own corner to protect themselves. Capital markets greeted this breaking story with surprise and a Champaign party attitude.
Have a Good Weekend as we bid the third quarter of 2011 goodbye !