Companies and countries are pulling back the curtain this morning, and investors like what they’re seeing. China met the Street’s expectations for 7.6% second quarter GDP growth — a relative slowdown indeed, but not necessarily the hard landing that traders fear. In the U.S., producer (wholesale) prices rose 0.1%, with the core number rising 0.2%. In the past 12 months the index is up 0.7%. With low gas prices helping cool inflation, will the Fed be more willing to pull the trigger on QE3?
European stocks have been up today as Italian bond yields pulled back. Germany’s DAX index was recently up 1%. The euro, however, hit a two-year low against the dollar at $1.216.
And earnings results are out from JPMorgan Chase (JPM) and Wells Fargo (WFC).
JPM beat analysts’ earnings estimates, although it was boosted once again by a debt valuation adjustment and other items that some investors consider to be a distraction from core results. JPM reported a $4.4 billion loss from its troubled CIO division. The company held a two-hour conference call, and CEO Jamie Dimon is apparently holding his own — the stock is up 2% in pre-market action.
Wells Fargo also narrowly beat estimates on strong mortgage results, but shares were down 0.3%.
Milk producer Dean Foods (DF) was down 2% after a downgrade from Goldman Sachs analysts.
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