Manufacturing Points to Weakening Economy

The Chicago Purchasing Managers Index carried a clearly negative message Tuesday, with the Institute for Supply Management (ISM) saying, "key aspects of the report pointed towards a weakening economy." While the sector of the American economy remains secondary to services, it still offers insight into the domestic economy.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers include NYSE: BA, NYSE: RTN, NYSE: DGI, NYSE: GY, NYSE: GD, NYSE: GR, NYSE: NOC, NYSE: HON, NYSE: LMT, NYSE: COL, NYSE: LLL, NYSE: ERJ, Nasdaq: FLIR, Nasdaq: BEAV, NYSE: TDG, NYSE: SPR, NYSE: CAE, NYSE: ATK, NYSE: HXL, NYSE: TGI, NYSE: ESL, NYSE: MOG-A, NYSE: HEI, NYSE: TDY, NYSE: CW, Nasdaq: CVCO, NYSE: SKY, Nasdaq: NOBH, Nasdaq: PHHM, NYSE: MHK, Nasdaq: IFSIA, NYSE: AIN, NYSE: UFI, NYSE: ITW, NYSE: TYC, NYSE: CMI, NYSE: KUB, NYSE: IR, NYSE: DOV, NYSE: ITT, NYSE: FLS, NYSE: PLL, NYSE: DRC, NYSE: SPW, NYSE: GDI, NYSE: IEX, Nasdaq: NDSN, NYSE: GGG, NYSE: ATU, Nasdaq: MIDD, NYSE: ABB, NYSE: ETN, NYSE: NJ, NYSE: ROK, NYSE: AME, NYSE: RBC, NYSE: TMB, Nasdaq: WGOV, NYSE: CAT, NYSE: DE, NYSE: CNH, Nasdaq: JOYG, Nasdaq: BUCY, Nasdaq: AGCO, NYSE: EMR, NYSE: PH, NYSE: ROP, NYSE: PNR, NYSE: WM, NYSE: RSG, Nasdaq: FAST, NYSE: VMC, NYSE: MDU, NYSE: MLM, NYSE: OC, NYSE: VAL, NYSE: PCP, NYSE: X, NYSE: RS, NYSE: NVR, NYSE: DHI, NYSE: PHM, NYSE: TOL, NYSE: HOV, NYSE: CRH, NYSE: CX, NYSE: EXP, NYSE: FLR, NYSE: MDR, Nasdaq: FWLT, NYSE: ICA, NYSE: SWK, NYSE: TKR, NYSE: KMT, NYSE: LUK, NYSE: MAS, NYSE: WY, NYSE: PWR, NYSE: CBI, NYSE: EME, NYSE: SNA, NYSE: TTC, NYSE: GM, NYSE: F.

Manufacturing Economy Weakening

The Chicago PMI Business Barometer Index dropped to 60.2 this month, from 62.2 in December. It was yet another economic data point leaving economists looking lost. Economists surveyed by Bloomberg were expecting the index to rise to 63.0. More importantly, the decline leaves them to survey whether indeed the economy is slipping into just a slow slug growth rate like the Federal Reserve expects or into a legitimate recession.

The service sector continues to dominate the American economy, and so the manufacturing sector remains secondary today. It also has been buoyed by global demand, and so is an imperfect measure of domestic well-being. Still, however loose a tie manufacturing has to the domestic marketplace, it represents a great hope for many. President Obama, for one, is hopeful America might move forward to restore its industrial base, with a keen eye toward alternative energy. Mitt Romney, who appears set to win the Florida GOP debate, is willing to go a step further to ensure American companies have a better footing with perennially accused trade cheater China. Manufacturing is clearly an important cog for American economic progress. The leaner sector, which clearly benefited from the financial crisis and recession driven restructuring of organized labor contracts like those at General Motors (NYSE: GM) and Ford (NYSE: F), might just have a chance given some of these described actions and other plans for it.

Looking at the Chicago PMI Report, each component measure declined to a less expansionary point, with the seasonally adjusted New Orders Index falling to 63.6, from 67.1 in December. New Orders are of course a critical indicator of the road ahead. Because of the slower pace of ordering, Order Backlogs fell into territory marking economic contraction, with that component index at 48.3 now, from 57.3 in December. The shares of important industrials General Electric (NYSE: GE), Honeywell (NYSE: HON), Caterpillar (NYSE: CAT) and Deere (NYSE: DE) were all in the red Tuesday as a result.

Further inspection of the data shows the Production Index eased to 63.8 from 64.9 in December. The Inventories Index likewise fell to 51.6 from 52.0 in December. Perhaps of greater interest to most, the Employment Index declined to 54.7 from 59.2 in December, showing less propensity to hire among manufacturers. This certainly played a role in the slippage of employment services stocks Tuesday, with Monster Worldwide (NYSE: MWW), Korn Ferry (NYSE: KFY) and Manpower (NYSE: MAN) down approximately 2% to 3% each.

Supplier Deliveries improved, but this only says to me that there exists an environment of less demand. However, Production Material lead time lengthened significantly, which would counter that argument unless production material capacity has been left idle due to slowing demand. I expect there are some seasonal issues at play here, for instance, with regard to irregular maintenance of facilities and plants that may be occurring now.

Further observance of the manufacturing sector is advised now, as it may show the impacts of European strife and the global slowing described, warned of, and expected by the World Bank and IMF, not to mention by yours truly. Wednesday, we’ll receive the ISM Manufacturing Index, which will offer a better national view, where the Chicago PMI measures the Midwest. With regard to ISM’s report for January, economists are once again looking for improvement, with the index seen rising to 54.5, from 53.9 in December. I expect another let down is pending, and that manufacturing is indeed finding a slower growth point for now.

There are all sorts of pressures on the sector, especially within defense, where the U.S. and many other nations are reducing funding. Though shares of Raytheon (NYSE: RTN), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and Alliant Techsystems (NYSE: ATK) traded mixed Tuesday. Still, with fewer orders coming to manufacturers from both private and public sectors, it seems the world may take a break from its fantastic global development of the last decade.

This article should interest investors in Boeing (NYSE: BA), Raytheon (NYSE: RTN), Digital Globe (NYSE: DGI), GenCorp (NYSE: GY), General Dynamics (NYSE: GD), Goodrich (NYSE: GR), Northrop Grumman (NYSE: NOC), Honeywell (NYSE: HON), Lockheed Martin (NYSE: LMT), Rockwell Collins (NYSE: COL), L-3 Communications (NYSE: LLL), EMBRAER (NYSE: ERJ), FLIR Systems (Nasdaq: FLIR), BE Aerospace (Nasdaq: BEAV), TransDigm (NYSE: TDG), Spirit Aerosystems (NYSE: SPR), CAE (NYSE: CAE), Alliant Techsystems (NYSE: ATK), Hexcel (NYSE: HXL), Triumph Group (NYSE: TGI), Esterline Technologies (NYSE: ESL), Moog (NYSE: MOG-A), Heico (NYSE: HEI), Teledyne (NYSE: TDY), Curtiss-Wright (NYSE: CW), Cavco (Nasdaq: CVCO), Skyline (NYSE: SKY), Nobility Homes (Nasdaq: NOBH), Palm Harbor Homes (Nasdaq: PHHM), Mohawk Industries (NYSE: MHK), Interface (Nasdaq: IFSIA), Albany International (NYSE: AIN), Unifi (NYSE: UFI), Illinois Tool Works (NYSE: ITW), Tyco International (NYSE: TYC), Cummins (NYSE: CMI), Kubota (NYSE: KUB), Ingersoll-Rand (NYSE: IR), Dover (NYSE: DOV), ITT Corp. (NYSE: ITT), Flowserve (NYSE: FLS), Pall (NYSE: PLL), Dresser-Rand (NYSE: DRC), SPX (NYSE: SPW), Gardner Denver (NYSE: GDI), IDEX (NYSE: IEX), Nordson (Nasdaq: NDSN), Graco (NYSE: GGG), Actuant (NYSE: ATU), Middleby (Nasdaq: MIDD), ABB (NYSE: ABB), Eaton (NYSE: ETN), Nidec (NYSE: NJ), Rockwell Automation (NYSE: ROK), Ametek (NYSE: AME), Regal Beloit (NYSE: RBC), Thomas & Betts (NYSE: TMB), Woodward Governor (Nasdaq: WGOV), Caterpillar (NYSE: CAT), Deere (NYSE: DE), CNH (NYSE: CNH), Joy Global (Nasdaq: JOYG), Bucyrus (Nasdaq: BUCY), Agco (Nasdaq: AGCO), Emerson Electric (NYSE: EMR), Parker Hannifin (NYSE: PH), Roper Industries (NYSE: ROP), Pentair (NYSE: PNR), Waste Management (NYSE: WM), Republic Services (NYSE: RSG), Fastenal (Nasdaq: FAST), Vulcan Materials (NYSE: VMC), MDU Resources (NYSE: MDU), Martin Marietta Materials (NYSE: MLM), Owens Corning (NYSE: OC), Valspar (NYSE: VAL), Precision Castparts (NYSE: PCP), United States Steel (NYSE: X), Reliance Steel (NYSE: RS), NVR (NYSE: NVR), DR Horton (NYSE: DHI), Pulte (NYSE: PHM), Toll Brothers (NYSE: TOL), Hovnanian (NYSE: HOV), CRH (NYSE: CRH), CEMEX (NYSE: CX), Eagle Materials (NYSE: EXP), Fluor (NYSE: FLR), McDermott International (NYSE: MDR), Foster Wheeler (Nasdaq: FWLT), Empresas ICA (NYSE: ICA), Stanley Black & Decker (NYSE: SWK), Timken (NYSE: TKR), Kennametal (NYSE: KMT), Leucadia National (NYSE: LUK), Masco (NYSE: MAS), Weyerhaeuser (NYSE: WY), Quanta Services (NYSE: PWR), Chicago Bridge & Iron (NYSE: CBI), EMCOR (NYSE: EME), Snap-on (NYSE: SNA), Toro (NYSE: TTC), GM (NYSE: GM) and Ford (NYSE: F).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Housing Stocks Lifted by Construction Spending Data

Construction Spending data was reported Tuesday and was embraced and propagated by real estate agents and housing longs. However, your sometimes hated, typically post-profit loved, and always critically analytical blogger here finds good reason to temper enthusiasm. That said, there are interesting trends developing in housing and other construction sectors.

Relative tickers: Nasdaq: ITIC, NYSE: BAC, OTC: FMCC.OB, OTC: FNMA.OB, NYSE: GS, NYSE: MS, NYSE: WFC, NYSE: TD, NYSE: SRS, NYSE: URE, NYSE: IGR, NYSE: XIN, Nasdaq: RYHRX, Nasdaq: TRREX, NYSE: TOL, NYSE: HOV, NYSE: DHI, NYSE: BZH, NYSE: LEN, NYSE: KBH, NYSE: PHM, NYSE: NVR, NYSE: GFA, NYSE: MDC, NYSE: RYL, NYSE: MTH, NYSE: BHS, NYSE: SPF, NYSE: MHO, AMEX: OHB, NYSE: VNQ, NYSE: PNC, NYSE: JPM, Nasdaq: HOFT, NYSE: ETH, NYSE: PIR, NYSE: WSM, NYSE: HD, NYSE: LOW, AMEX: VAZ, AMEX: NKR, AMEX: MZA, AMEX: NXE, AMEX: NFZ, Nasdaq: XNFZX, Nasdaq: FSAZX, Nasdaq: AVTR, NYSE: AIV, NYSE: EQR, NYSE: AVB, NYSE: UDR, NYSE: ESS, NYSE: CPT, NYSE: SNH, NYSE: BRE, NYSE: HME, NYSE: MAA, NYSE: ELS, NYSE: ACC, NYSE: CLP, Nasdaq: AGNC, NYSE: SUI, NYSE: AEC, NYSE: PMT and AMEX: TWO, NYSE: SPG.

Construction Spending Rise

Construction Spending was reported 1.2% higher in November, exceeding economists’ expectations for a 0.5% increase. “Woo hoo,” exclaimed the once high flying mortgage broker now working at Home Depot (NYSE: HD) in order to make the electric bill. “Alright,” declared the Ryland Group (NYSE: RYL) sales representative who’s hours have been cut to part-time, and who delivers pizza on the side. “Jump on it,” announced the reporter/stock-picker whose ratings climb on sensationalism.

Yours truly, however, has another view, and considering the unbiased nature of that view, it might be worth noting. Taking a closer look at the economic report produced by the U.S. Census Bureau Tuesday, we find that the growth reported for November benefited tremendously from a revision to the prior month result. Initially noted for 0.8% growth, October’s construction spending was revised significantly downward, now showing a 0.2% decrease in activity. Well, when you cut the base of your growth calculation, you are certain to get better growth than what economists based their forecasts upon.

Now, the shares of homebuilders rallied significantly on the news, with builders Hovnanian (NYSE: HOV) and PulteGroup (NYSE: PHM) jumping 6.9% and 3.3%, respectively. K.B. Home (NYSE: KBH) climbed 3%, while D.R. Horton (NYSE: DHI) and Toll Brothers (NYSE: TOL) rose 2.9% each. Beazer (NYSE: BZH) rose 2.4% and Lennar (NYSE: LEN) edged higher 1.2%.

In the past I’ve noted multi-family home growth, and have warned that it is not a good sign for the economy to generate a nation full of Pottersville renter suckers. However, this report shows good growth in single-family home construction, which was up 1.5% in November, though on a seasonally adjusted basis. In fact, looking at the trend of the past five months we see a generally improving market.

Eventually, new home construction was going to have to improve, driven by lack of supply after a period lasting so long with so little new construction. The population continues to grow, hard working immigrants enter the market on job offers, and home demand creeps higher. What has kept this natural driver from making an impact for so long has been the usual suspects: the foreclosure overhang of existing homes for sale cheaper than new homes; tight lending standards keeping once approvable buyers out of the market; plus a good number of more recent buyers sitting on underwater mortgages. Eventually, though this was going to be absorbed, and perhaps we are starting to see some of that finally. My concern of late, which has affected my view for housing, is a macroeconomic stumbling block I see ahead driving new recession and holding up a housing recovery.

Multi-family construction also increased 1.3% in November, and so Potter’s slums continue to find new suckers. The five-month trend for the multi-family segment is also one depicting increasing demand, though in a less fluid manner. On a year-to-year basis, new single family home construction was up 2.5%, while multi-family projects were up 4.1%. It’s here where you can more clearly see the damage to home ownership in this difficult economic hangover and the beneficiary, the multi-family segment.

Editor's Note: Article should interest investors in Investors Title (Nasdaq: ITIC), Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), UltraShort Real Estate ProShares (NYSE: SRS), Ultra Real Estate ProShares (NYSE: URE), ING Clarion Global Real Estate Income Fund (NYSE: IGR), Xinyuan Real Estate Co. (NYSE: XIN), Rydex Real Estate Fund H (Nasdaq: RYHRX), T. Rowe Price Real Estate Fund (Nasdaq: TRREX), Toll Brothers (NYSE: TOL), Hovnanian (NYSE: HOV), D.R. Horton (NYSE: DHI), Beazer Homes (NYSE: BZH), Lennar (NYSE: LEN), K.B. Homes (NYSE: KBH), Pulte Homes (NYSE: PHM), NVR Inc. (NYSE: NVR), Gafisa SA (NYSE: GFA), MDC Holdings (NYSE: MDC), Ryland Group (NYSE: RYL), Meritage Homes (NYSE: MTH), Brookfield Homes (NYSE: BHS), Standard Pacific (NYSE: SPF), M/I Homes (NYSE: MHO), Orleans Homebuilders (AMEX: OHB), Vanguard REIT Index ETF (NYSE: VNQ), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), Hooker Furniture (Nasdaq: HOFT), Ethan Allen (NYSE: ETH), Pier 1 Imports (NYSE: PIR), Williams Sonoma (NYSE: WSM), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Nasdaq: XNFZX, Nasdaq: FSAZX, Avatar Holdings (Nasdaq: AVTR), Apartment Investment & Management (NYSE: AIV), Equity Residential (NYSE: EQR), Avalonbay Communities (NYSE: AVB), UDR Inc. (NYSE: UDR), Essex Property Trust (NYSE: ESS), Camden Property Trust (NYSE: CPT), Senior Housing Properties (NYSE: SNH), BRE Properties (NYSE: BRE), Home Properties (NYSE: HME), Mid-America Apartment (NYSE: MAA), Equity Lifestyle Properties (NYSE: ELS), American Campus Communities (NYSE: ACC), Colonial Properties (NYSE: CLP), American Capital Agency (Nasdaq: AGNC), Sun Communities (NYSE: SUI), Associated Estates (NYSE: AEC), PennyMac Mortgage (NYSE: PMT), Two Harbors (AMEX: TWO), Simon Property Group (NYSE: SPG).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Industrials Party Crashed by the Bear

Investors celebrated the Durable Goods Orders data for the month of August on Wednesday morning, as non-defense capital goods orders excluding aircraft climbed 1.1%. The segment representing business investment had declined 0.2% in July and raised a red flag on the economy. Thus, this recovery was counter-relative and a relief to market participants, at least until stocks turned sour universally in the afternoon. There are important considerations that might dilute the punch of this data longer term if they prove true in the months ahead. I expose that risk for you herein.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Industrials Party Crashed by the Bear

The first thing I do when reviewing such a data-point is to note if there was a significant revision to the prior months’ data. A sharp revision lower to the prior month can serve to provide illusory growth in the reporting period. However, in this case, and at least for the headline data, the revisions seemed to be minor and served to discount this month’s growth anyhow (they were revisions higher). I could not locate the pre-revision number with regard to nondefense capital goods excluding transportation segment, but the potential impact here should be considered by the reader.

Durable Goods New Orders declined 0.1% on the whole, which was disappointing against the economists’ consensus forecast for 0.2% growth in August. Still, the decline followed July’s 4.1% growth (revised from 4.0%), so the volatility of these irregular high-ticket priced orders is better smoothed when reviewed over more than a month. When excluding transportation, new orders fell by the same 0.1% seen in the headline figure in August, though this time beating the economists’ consensus for a drop of 0.2%. In July, the ex-transportation count increased by 0.7% month-to-month. Excluding defense, new orders also fell by 0.1% in August, though following a 4.8% increase in July.

Shipments fell 0.2% in August, after rising 2.1% in July. Excluding transportation, shipments gained 1.2%, off a drop of 0.6% in July. Excluding defense, shipments fell 0.4% in August, after their 2.5% increase in July.

Let’s get right to the market moving news. Non-defense capital goods orders ex-transportation increased 1.1% in August, following the 0.2% decline in July. In June, these orders rose 0.8%. The result of this news is raised economic hope and lowered expectations of recession, at least for Q3. Macroeconomic Advisors raised its GDP forecast to an annual rate of 2.1% for the third quarter, up from 1.7% previously; several economists did the same, due to this data.

However, there’s one key risk overhanging these projection upgrades and also on investment decisions based on economic gain expectations. Outside of the specific companies benefiting, I am not sure there will be much profiting in America. I expect much of this growth is on exports, goods sold to the emerging world. For as long as there is robust growth in India, China, etc., this data-point will not prove a timely harbinger of economic strife in the United States. Also, let’s not forget that the American manufacturing sector restructured significantly through the last recession, some through bankruptcy and some thanks to the government. Mostly, these improvements came on capacity contraction and union concessions. Thus, the manufacturing sector is more nimble today. And one should question how long the emerging world can sustain robust growth if American consumption retrenches further and European consumers gather into a shell. Christine Lagarde warned of this in a recent address given during her American tour.

Industry Sector Breakdown
Not all industrials saw a stellar August, and that was reflected in the day’s trading of some of the shares through midday. However, since about 1:00 PM Wednesday, stocks started lower across the board, and at 3:15 PM ET or so, the decline accelerated. Growth was certainly celebrated early though in the Aerospace/Defense Industry, which according to Yahoo Finance (Nasdaq: YHOO), was up 1.9% to 2.5%, depending on whether we’re talking about the major diversified companies or those listed in products and services. There was good reason for this, as the Durables Report showed a 22.5% increase in new orders. Still, Lockheed Martin (NYSE: LMT), Rockwell Collins (NYSE: COL) and Boeing (NYSE: BA) ended down about 1% or so. The Dow was off 1.6%, to put this into relative perspective.

Computers and electronic products saw a 1.3% increase in new orders, and the shares of relative firms did well to start the day, but followed the general market track into the close. Of course, Amazon.com (Nasdaq: AMZN), which maintained a gain of 2.5%, had a strong company specific driver. Sony (NYSE: SNE) kept above water too though, rising 0.6%, perhaps on the durables report. However, Apple (Nasdaq: AAPL), which was firefighting against rumors and Amazon’s entry into the tablet market, declined 0.5% on the day. Dell (Nasdaq: DELL), also in the news, fell about 1.9%. Microsoft (Nasdaq: MSFT) was short just 0.4%, which again reflects relative outperformance against the broader indexes.

Manufacturing recorded a 0.7% increase in new orders, but the growth was specific to industry. Primary metals saw a 0.8% decline and fabricated metal products fell 0.5%. As a result, Arcelor Mittal (NYSE: MT) shares dropped 3.7%. Communication equipment orders improved 7.8%, but the shares of Cisco Systems (Nasdaq: CSCO) and Broadcom (Nasdaq: BRCM) fell 1.4% and 2.9%, respectively. Motor vehicles and parts saw an 8.5% drop, and the shares of Ford and GM fell 1.9% and 3.7%, respectively.

Another important sub-metric found in the durables report is the data on unfilled orders, which were up 0.9% for the second consecutive month. Some of these orders may prove to be in error, and when considering the dollar figures involved (a $7.6 billion increase in August), it’s worth noting. For the most part, this data is viewed as a positive, as it represents business in process. Inventory reached record levels (most since 1992), but this has a lot to do with population growth and emerging market development over time. Markets have grown and so have inventories. Still, excess ordering and fat inventories can lead to trouble when sideswiped by surprising economic recession.

In conclusion, the market had reason to celebrate this morning, but I suspect the caution that was reflected in the sharply downward close was likewise due. I expect that with time, we will find that the day’s market enthusing news seen in durables orders will be shown to be due to exports. Furthermore, there should be concern that this economic stabilizing force could soften over time, given consumer sentiment and economic conditions in both Europe and the United States.

This article should interest industrials investors in Boeing (NYSE: BA), Raytheon (NYSE: RTN), Digital Globe (NYSE: DGI), GenCorp (NYSE: GY), General Dynamics (NYSE: GD), Goodrich (NYSE: GR), Northrop Grumman (NYSE: NOC), Honeywell (NYSE: HON), Lockheed Martin (NYSE: LMT), Rockwell Collins (NYSE: COL), L-3 Communications (NYSE: LLL), EMBRAER (NYSE: ERJ), FLIR Systems (Nasdaq: FLIR), BE Aerospace (Nasdaq: BEAV), TransDigm (NYSE: TDG), Spirit Aerosystems (NYSE: SPR), CAE (NYSE: CAE), Alliant Techsystems (NYSE: ATK), Hexcel (NYSE: HXL), Triumph Group (NYSE: TGI), Esterline Technologies (NYSE: ESL), Moog (NYSE: MOG-A), Heico (NYSE: HEI), Teledyne (NYSE: TDY), Curtiss-Wright (NYSE: CW), Cavco (Nasdaq: CVCO), Skyline (NYSE: SKY), Nobility Homes (Nasdaq: NOBH), Palm Harbor Homes (Nasdaq: PHHM), Mohawk Industries (NYSE: MHK), Interface (Nasdaq: IFSIA), Albany International (NYSE: AIN), Unifi (NYSE: UFI), Illinois Tool Works (NYSE: ITW), Tyco International (NYSE: TYC), Cummins (NYSE: CMI), Kubota (NYSE: KUB), Ingersoll-Rand (NYSE: IR), Dover (NYSE: DOV), ITT Corp. (NYSE: ITT), Flowserve (NYSE: FLS), Pall (NYSE: PLL), Dresser-Rand (NYSE: DRC), SPX (NYSE: SPW), Gardner Denver (NYSE: GDI), IDEX (NYSE: IEX), Nordson (Nasdaq: NDSN), Graco (NYSE: GGG), Actuant (NYSE: ATU), Middleby (Nasdaq: MIDD), ABB (NYSE: ABB), Eaton (NYSE: ETN), Nidec (NYSE: NJ), Rockwell Automation (NYSE: ROK), Ametek (NYSE: AME), Regal Beloit (NYSE: RBC), Thomas & Betts (NYSE: TMB), Woodward Governor (Nasdaq: WGOV), Caterpillar (NYSE: CAT), Deere (NYSE: DE), CNH (NYSE: CNH), Joy Global (Nasdaq: JOYG), Bucyrus (Nasdaq: BUCY), Agco (Nasdaq: AGCO), Emerson Electric (NYSE: EMR), Parker Hannifin (NYSE: PH), Roper Industries (NYSE: ROP), Pentair (NYSE: PNR), Waste Management (NYSE: WM), Republic Services (NYSE: RSG), Fastenal (Nasdaq: FAST), Vulcan Materials (NYSE: VMC), MDU Resources (NYSE: MDU), Martin Marietta Materials (NYSE: MLM), Owens Corning (NYSE: OC), Valspar (NYSE: VAL), Precision Castparts (NYSE: PCP), United States Steel (NYSE: X), Reliance Steel (NYSE: RS), NVR (NYSE: NVR), DR Horton (NYSE: DHI), Pulte (NYSE: PHM), Toll Brothers (NYSE: TOL), Hovnanian (NYSE: HOV), CRH (NYSE: CRH), CEMEX (NYSE: CX), Eagle Materials (NYSE: EXP), Fluor (NYSE: FLR), McDermott International (NYSE: MDR), Foster Wheeler (Nasdaq: FWLT), Empresas ICA (NYSE: ICA), Stanley Black & Decker (NYSE: SWK), Timken (NYSE: TKR), Kennametal (NYSE: KMT), Leucadia National (NYSE: LUK), Masco (NYSE: MAS), Weyerhaeuser (NYSE: WY), Quanta Services (NYSE: PWR), Chicago Bridge & Iron (NYSE: CBI), EMCOR (NYSE: EME), Snap-on (NYSE: SNA), Toro (NYSE: TTC), GM (NYSE: GM) and Ford (NYSE: F).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Not So Fantastic Factory Orders

The market grew enthusiastic Wednesday on Factory Order growth that exceeded economists’ views. That’s because any news that contradicts with data showing softness in manufacturing, consumer mood or any other recently questionable economic measure offers hope. However, closer inspection of the data and a minute of critical thought should lead to the determination that this factory order report is not so fantastic.



Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.



Relative tickers: NYSE: BA, NYSE: RTN, NYSE: DGI, NYSE: GY, NYSE: GD, NYSE: GR, NYSE: NOC, NYSE: HON, NYSE: LMT, NYSE: COL, NYSE: LLL, NYSE: ERJ, Nasdaq: FLIR, Nasdaq: BEAV, NYSE: TDG, NYSE: SPR, NYSE: CAE, NYSE: ATK, NYSE: HXL, NYSE: TGI, NYSE: ESL, NYSE: MOG-A, NYSE: HEI, NYSE: TDY, NYSE: CW, Nasdaq: CVCO, NYSE: SKY, Nasdaq: NOBH, Nasdaq: PHHM, NYSE: MHK, Nasdaq: IFSIA, NYSE: AIN, NYSE: UFI, NYSE: ITW, NYSE: TYC, NYSE: CMI, NYSE: KUB, NYSE: IR, NYSE: DOV, NYSE: ITT, NYSE: FLS, NYSE: PLL, NYSE: DRC, NYSE: SPW, NYSE: GDI, NYSE: IEX, Nasdaq: NDSN, NYSE: GGG, NYSE: ATU, Nasdaq: MIDD, NYSE: ABB, NYSE: ETN, NYSE: NJ, NYSE: ROK, NYSE: AME, NYSE: RBC, NYSE: TMB, Nasdaq: WGOV, NYSE: CAT, NYSE: DE, NYSE: CNH, Nasdaq: JOYG, Nasdaq: BUCY, Nasdaq: AGCO, NYSE: EMR, NYSE: PH, NYSE: ROP, NYSE: PNR, NYSE: WM, NYSE: RSG, Nasdaq: FAST, NYSE: VMC, NYSE: MDU, NYSE: MLM, NYSE: OC, NYSE: VAL, NYSE: PCP, NYSE: X, NYSE: RS, NYSE: NVR, NYSE: DHI, NYSE: PHM, NYSE: TOL, NYSE: HOV, NYSE: CRH, NYSE: CX, NYSE: EXP, NYSE: FLR, NYSE: MDR, Nasdaq: FWLT, NYSE: ICA, NYSE: SWK, NYSE: TKR, NYSE: KMT, NYSE: LUK, NYSE: MAS, NYSE: WY, NYSE: PWR, NYSE: CBI, NYSE: EME, NYSE: SNA, NYSE: TTC, NYSE: GM, NYSE: F.

Not So Fantastic Factory Orders

Factory Orders rose 2.4% in July, ahead of economists’ views for 2.0% growth, giving life to stocks Wednesday. July’s growth offered hope in the place of the concern brought on by June’s revised order decline of 0.4% (revised from -0.8%). It also offered respite from the general worry brewed up by the recent Philly Fed Survey alarm, which exacerbated manufacturing sector concern.



However, July’s Factory Order growth will not perfectly relieve market pressures. It was, after all, mostly on high ticket transportation orders. Excluding transportation, new orders increased just 0.9%. Transportation equipment orders were up 14.8%, and durable goods orders rose 4.1%. This is good news of course, but it is important to note that nondurable goods orders were up 1.0% and that we are talking about July. More recent data, including the Philly Fed and ISM data, seem to indicate August may have been significantly less enthusing, if not downright depressing.



As I surveyed the list of industries reported upon individually, I noted many percentage changes with minus signs before them. For example, while primary metal goods orders were up 9.9%, machinery orders were down 0.2% and industrial machinery was short 13.8%. Where non-defense aircraft and parts orders were up 43.4%, computer and electronic products orders were off 3.4%. Electrical equipment, appliances and components orders fell by 2.3% and furniture and related products orders were flat. It’s possible that demand from Japan, driven by its rebuilding effort post its catastrophic earthquake, helped to lift some categories while others languished.



The Chicago Purchasing Managers Index was also reported Wednesday, and its Business Barometer Index deteriorated to a mark of 56.5, from July’s 58.8 level. This survey measures all business in the Chicago region, and a mark above 50 signifies there is regional strength in the Midwest. Perhaps this is the result of emerging market demand for autos and other goods manufactured in the U.S. In any event, it’s clear that the Midwest is holding up better now than the East Coast.



The Factory Orders data showed that inventory continues to build. In fact, inventory of manufactured durable goods was up nineteen consecutive months, and is currently at its highest level since the series was first published on a NAICS basis in 1992. Even while inventories were higher though, the inventory-to-shipments ratio improved to 1.32, from 1.33 in June. So premature inventory build would not seem to be a major problem, unless orders are cancelled.



While the market celebrates what’s worth a cheer, I cannot help but to advise readers to note the divergence between industries illustrated within the report. Also, given that since July, consumer confidence has deteriorated further and faith in the American economy has been shaken, we cannot necessarily party heartily before August and September’s results are shown. I have concern that an eventual loss of the temporary boost from Japanese rebuilding demands and also slowing emerging market demand for goods globally, which have been supports against a suspect American recovery, threaten to alter the trend in factory order growth in the months ahead. Indeed, I beckon you to beware that recession is a significant threat, and advise that I find this latest factory order data less than fantastic.



This article should interest investors in Boeing (NYSE: BA), Raytheon (NYSE: RTN), Digital Globe (NYSE: DGI), GenCorp (NYSE: GY), General Dynamics (NYSE: GD), Goodrich (NYSE: GR), Northrop Grumman (NYSE: NOC), Honeywell (NYSE: HON), Lockheed Martin (NYSE: LMT), Rockwell Collins (NYSE: COL), L-3 Communications (NYSE: LLL), EMBRAER (NYSE: ERJ), FLIR Systems (Nasdaq: FLIR), BE Aerospace (Nasdaq: BEAV), TransDigm (NYSE: TDG), Spirit Aerosystems (NYSE: SPR), CAE (NYSE: CAE), Alliant Techsystems (NYSE: ATK), Hexcel (NYSE: HXL), Triumph Group (NYSE: TGI), Esterline Technologies (NYSE: ESL), Moog (NYSE: MOG-A), Heico (NYSE: HEI), Teledyne (NYSE: TDY), Curtiss-Wright (NYSE: CW), Cavco (Nasdaq: CVCO), Skyline (NYSE: SKY), Nobility Homes (Nasdaq: NOBH), Palm Harbor Homes (Nasdaq: PHHM), Mohawk Industries (NYSE: MHK), Interface (Nasdaq: IFSIA), Albany International (NYSE: AIN), Unifi (NYSE: UFI), Illinois Tool Works (NYSE: ITW), Tyco International (NYSE: TYC), Cummins (NYSE: CMI), Kubota (NYSE: KUB), Ingersoll-Rand (NYSE: IR), Dover (NYSE: DOV), ITT Corp. (NYSE: ITT), Flowserve (NYSE: FLS), Pall (NYSE: PLL), Dresser-Rand (NYSE: DRC), SPX (NYSE: SPW), Gardner Denver (NYSE: GDI), IDEX (NYSE: IEX), Nordson (Nasdaq: NDSN), Graco (NYSE: GGG), Actuant (NYSE: ATU), Middleby (Nasdaq: MIDD), ABB (NYSE: ABB), Eaton (NYSE: ETN), Nidec (NYSE: NJ), Rockwell Automation (NYSE: ROK), Ametek (NYSE: AME), Regal Beloit (NYSE: RBC), Thomas & Betts (NYSE: TMB), Woodward Governor (Nasdaq: WGOV), Caterpillar (NYSE: CAT), Deere (NYSE: DE), CNH (NYSE: CNH), Joy Global (Nasdaq: JOYG), Bucyrus (Nasdaq: BUCY), Agco (Nasdaq: AGCO), Emerson Electric (NYSE: EMR), Parker Hannifin (NYSE: PH), Roper Industries (NYSE: ROP), Pentair (NYSE: PNR), Waste Management (NYSE: WM), Republic Services (NYSE: RSG), Fastenal (Nasdaq: FAST), Vulcan Materials (NYSE: VMC), MDU Resources (NYSE: MDU), Martin Marietta Materials (NYSE: MLM), Owens Corning (NYSE: OC), Valspar (NYSE: VAL), Precision Castparts (NYSE: PCP), United States Steel (NYSE: X), Reliance Steel (NYSE: RS), NVR (NYSE: NVR), DR Horton (NYSE: DHI), Pulte (NYSE: PHM), Toll Brothers (NYSE: TOL), Hovnanian (NYSE: HOV), CRH (NYSE: CRH), CEMEX (NYSE: CX), Eagle Materials (NYSE: EXP), Fluor (NYSE: FLR), McDermott International (NYSE: MDR), Foster Wheeler (Nasdaq: FWLT), Empresas ICA (NYSE: ICA), Stanley Black & Decker (NYSE: SWK), Timken (NYSE: TKR), Kennametal (NYSE: KMT), Leucadia National (NYSE: LUK), Masco (NYSE: MAS), Weyerhaeuser (NYSE: WY), Quanta Services (NYSE: PWR), Chicago Bridge & Iron (NYSE: CBI), EMCOR (NYSE: EME), Snap-on (NYSE: SNA), Toro (NYSE: TTC), GM (NYSE: GM) and Ford (NYSE: F).



Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Manufacturing Recession Alarm Sounds

Even before the latest reporting of the Philadelphia Fed’s Business Outlook Survey, indicators of the manu- facturing sector had been flashing red. But in case you hadn’t noticed, the folks in Philadelphia got right up in our face this month with a reading for the region’s business activity that screams trouble. However, due to the extraordinary events that surrounded the period of survey, within which investors contemplated a nascent downgrade of American credit, the great depths of despair reflected this August may prove disproportionate to reality.



Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.



Relative tickers: NYSE: BA, NYSE: RTN, NYSE: DGI, NYSE: GY, NYSE: GD, NYSE: GR, NYSE: NOC, NYSE: HON, NYSE: LMT, NYSE: COL, NYSE: LLL, NYSE: ERJ, Nasdaq: FLIR, Nasdaq: BEAV, NYSE: TDG, NYSE: SPR, NYSE: CAE, NYSE: ATK, NYSE: HXL, NYSE: TGI, NYSE: ESL, NYSE: MOG-A, NYSE: HEI, NYSE: TDY, NYSE: CW, Nasdaq: CVCO, NYSE: SKY, Nasdaq: NOBH, Nasdaq: PHHM, NYSE: MHK, Nasdaq: IFSIA, NYSE: AIN, NYSE: UFI, NYSE: ITW, NYSE: TYC, NYSE: CMI, NYSE: KUB, NYSE: IR, NYSE: DOV, NYSE: ITT, NYSE: FLS, NYSE: PLL, NYSE: DRC, NYSE: SPW, NYSE: GDI, NYSE: IEX, Nasdaq: NDSN, NYSE: GGG, NYSE: ATU, Nasdaq: MIDD, NYSE: ABB, NYSE: ETN, NYSE: NJ, NYSE: ROK, NYSE: AME, NYSE: RBC, NYSE: TMB, Nasdaq: WGOV, NYSE: CAT, NYSE: DE, NYSE: CNH, Nasdaq: JOYG, Nasdaq: BUCY, Nasdaq: AGCO, NYSE: EMR, NYSE: PH, NYSE: ROP, NYSE: PNR, NYSE: WM, NYSE: RSG, Nasdaq: FAST, NYSE: VMC, NYSE: MDU, NYSE: MLM, NYSE: OC, NYSE: VAL, NYSE: PCP, NYSE: X, NYSE: RS, NYSE: NVR, NYSE: DHI, NYSE: PHM, NYSE: TOL, NYSE: HOV, NYSE: CRH, NYSE: CX, NYSE: EXP, NYSE: FLR, NYSE: MDR, Nasdaq: FWLT, NYSE: ICA, NYSE: SWK, NYSE: TKR, NYSE: KMT, NYSE: LUK, NYSE: MAS, NYSE: WY, NYSE: PWR, NYSE: CBI, NYSE: EME, NYSE: SNA, NYSE: TTC, NYSE: GM, NYSE: F.

Manufacturing Recession Alarm Sounds

The Philadelphia Federal Reserve Bank’s broadest measure of manufacturing conditions is its Diffusion Index of Current Activity. This month, it reached a depth last seen in March of 2009, when stocks bottomed out under a blanket of chaos and concern. The measure sank to negative 30.7 in August, deeply down from the positive 3.2 reading in July. But what do you expect when you survey businessmen between August 8 and 16, the first week following S&P’s downgrading of the United States’ sovereign debt rating. At that time, it appeared to most that Pandora’s Box had been opened, and global economic disintegration would result.



But businessmen were already on edge, as reflected by the Philly Fed’s July reading only slightly above break-even. Indeed, the ISM’s national measure of the manufacturing sector was also near indicating recession at last check. Released on August 1, ISM’s index flirted with it, touching 50.9, where a reading of below 50 would officially sound the alarm.



Generally, it appears that either all business activity froze the week of the Philly survey out of sheer panic or we are very clearly entering recession… or both. Respondents indicated that new orders dropped off sharply, with the New Order Index falling 27 points. Current shipments dropped as well, with the index measuring the activity falling 18 points. What’s more, the indexes for inventories, unfilled orders and delivery times were all in negative territory.



While we would expect employment to lag other indicators, considering that this month’s drop-off follows a trend of growth deceleration, what we discovered about employment in the manufacturing space is no surprise. While 18% of firms surveyed said they had increased their worker count this month, 23% said they had made cuts. The workweek index fell 9 points as well, but many factories shut down for maintenance work during the summer. Indeed, some 29% of the firms surveyed had scheduled summer month shutdowns this year.



The only good result of slowing business activity is a commensurate easing of pricing pressures, and the Philadelphia area respondents concurred. They saw prices paid ease, but prices received also declined. The Philly Fed remained relatively positive on the future outlook, but that was only because readings stayed in positive territory with that regard; they still dropped precipitously. To be precise, the measure of future activity, measuring expectations for the next six months, fell 22 points.



In general, the Philly Fed reports that they see a sharp decrease in demand for manufactured goods. However, the real question to ask is, how acutely did broad concern about the US debt downgrade affect the responses of survey respondents? I think we can expect that the chaos and concern that have characterized the last week and a half across the stock market have affected the mentality of all Americans and driven a shutdown of business activity in August. We’ve seen this reflected in stock prices, consumer sentiment measures and now in this survey of purchasing managers. This shutdown, following a freezing in July on the political wrangling around the debt ceiling issue, seems capable of driving the third quarter of 2011 into recessionary territory, in my view. So let’s all thank Washington and Wall Street (S&P), for once again being at the core of all that ills us.



This article should interest investors in Boeing (NYSE: BA), Raytheon (NYSE: RTN), Digital Globe (NYSE: DGI), GenCorp (NYSE: GY), General Dynamics (NYSE: GD), Goodrich (NYSE: GR), Northrop Grumman (NYSE: NOC), Honeywell (NYSE: HON), Lockheed Martin (NYSE: LMT), Rockwell Collins (NYSE: COL), L-3 Communications (NYSE: LLL), EMBRAER (NYSE: ERJ), FLIR Systems (Nasdaq: FLIR), BE Aerospace (Nasdaq: BEAV), TransDigm (NYSE: TDG), Spirit Aerosystems (NYSE: SPR), CAE (NYSE: CAE), Alliant Techsystems (NYSE: ATK), Hexcel (NYSE: HXL), Triumph Group (NYSE: TGI), Esterline Technologies (NYSE: ESL), Moog (NYSE: MOG-A), Heico (NYSE: HEI), Teledyne (NYSE: TDY), Curtiss-Wright (NYSE: CW), Cavco (Nasdaq: CVCO), Skyline (NYSE: SKY), Nobility Homes (Nasdaq: NOBH), Palm Harbor Homes (Nasdaq: PHHM), Mohawk Industries (NYSE: MHK), Interface (Nasdaq: IFSIA), Albany International (NYSE: AIN), Unifi (NYSE: UFI), Illinois Tool Works (NYSE: ITW), Tyco International (NYSE: TYC), Cummins (NYSE: CMI), Kubota (NYSE: KUB), Ingersoll-Rand (NYSE: IR), Dover (NYSE: DOV), ITT Corp. (NYSE: ITT), Flowserve (NYSE: FLS), Pall (NYSE: PLL), Dresser-Rand (NYSE: DRC), SPX (NYSE: SPW), Gardner Denver (NYSE: GDI), IDEX (NYSE: IEX), Nordson (Nasdaq: NDSN), Graco (NYSE: GGG), Actuant (NYSE: ATU), Middleby (Nasdaq: MIDD), ABB (NYSE: ABB), Eaton (NYSE: ETN), Nidec (NYSE: NJ), Rockwell Automation (NYSE: ROK), Ametek (NYSE: AME), Regal Beloit (NYSE: RBC), Thomas & Betts (NYSE: TMB), Woodward Governor (Nasdaq: WGOV), Caterpillar (NYSE: CAT), Deere (NYSE: DE), CNH (NYSE: CNH), Joy Global (Nasdaq: JOYG), Bucyrus (Nasdaq: BUCY), Agco (Nasdaq: AGCO), Emerson Electric (NYSE: EMR), Parker Hannifin (NYSE: PH), Roper Industries (NYSE: ROP), Pentair (NYSE: PNR), Waste Management (NYSE: WM), Republic Services (NYSE: RSG), Fastenal (Nasdaq: FAST), Vulcan Materials (NYSE: VMC), MDU Resources (NYSE: MDU), Martin Marietta Materials (NYSE: MLM), Owens Corning (NYSE: OC), Valspar (NYSE: VAL), Precision Castparts (NYSE: PCP), United States Steel (NYSE: X), Reliance Steel (NYSE: RS), NVR (NYSE: NVR), DR Horton (NYSE: DHI), Pulte (NYSE: PHM), Toll Brothers (NYSE: TOL), Hovnanian (NYSE: HOV), CRH (NYSE: CRH), CEMEX (NYSE: CX), Eagle Materials (NYSE: EXP), Fluor (NYSE: FLR), McDermott International (NYSE: MDR), Foster Wheeler (Nasdaq: FWLT), Empresas ICA (NYSE: ICA), Stanley Black & Decker (NYSE: SWK), Timken (NYSE: TKR), Kennametal (NYSE: KMT), Leucadia National (NYSE: LUK), Masco (NYSE: MAS), Weyerhaeuser (NYSE: WY), Quanta Services (NYSE: PWR), Chicago Bridge & Iron (NYSE: CBI), EMCOR (NYSE: EME), Snap-on (NYSE: SNA), Toro (NYSE: TTC), GM (NYSE: GM) and Ford (NYSE: F).



Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Manufacturing Sirens Sound Alert

The Institute for Supply Management (ISM) today published its Manu- facturing Report on Business, with a disturbing trend only deter- iorating further in July. The manufacturing sector, that group of businesses that led the American economy out of the last recession thanks greatly to overseas demand for goods, moved dangerously close to economic contraction in July.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers: NYSE: BA, NYSE: RTN, NYSE: DGI, NYSE: GY, NYSE: GD, NYSE: GR, NYSE: NOC, NYSE: HON, NYSE: LMT, NYSE: COL, NYSE: LLL, NYSE: ERJ, Nasdaq: FLIR, Nasdaq: BEAV, NYSE: TDG, NYSE: SPR, NYSE: CAE, NYSE: ATK, NYSE: HXL, NYSE: TGI, NYSE: ESL, NYSE: MOG-A, NYSE: HEI, NYSE: TDY, NYSE: CW, Nasdaq: CVCO, NYSE: SKY, Nasdaq: NOBH, Nasdaq: PHHM, NYSE: MHK, Nasdaq: IFSIA, NYSE: AIN, NYSE: UFI, NYSE: ITW, NYSE: TYC, NYSE: CMI, NYSE: KUB, NYSE: IR, NYSE: DOV, NYSE: ITT, NYSE: FLS, NYSE: PLL, NYSE: DRC, NYSE: SPW, NYSE: GDI, NYSE: IEX, Nasdaq: NDSN, NYSE: GGG, NYSE: ATU, Nasdaq: MIDD, NYSE: ABB, NYSE: ETN, NYSE: NJ, NYSE: ROK, NYSE: AME, NYSE: RBC, NYSE: TMB, Nasdaq: WGOV, NYSE: CAT, NYSE: DE, NYSE: CNH, Nasdaq: JOYG, Nasdaq: BUCY, Nasdaq: AGCO, NYSE: EMR, NYSE: PH, NYSE: ROP, NYSE: PNR, NYSE: WM, NYSE: RSG, Nasdaq: FAST, NYSE: VMC, NYSE: MDU, NYSE: MLM, NYSE: OC, NYSE: VAL, NYSE: PCP, NYSE: X, NYSE: RS, NYSE: NVR, NYSE: DHI, NYSE: PHM, NYSE: TOL, NYSE: HOV, NYSE: CRH, NYSE: CX, NYSE: EXP, NYSE: FLR, NYSE: MDR, Nasdaq: FWLT, NYSE: ICA, NYSE: SWK, NYSE: TKR, NYSE: KMT, NYSE: LUK, NYSE: MAS, NYSE: WY, NYSE: PWR, NYSE: CBI, NYSE: EME, NYSE: SNA, NYSE: TTC, NYSE: GM, NYSE: F.

Manufacturing Sirens Sound Alert

ISM published its Manufacturing Index for July this morning, and offered a disappointing result which continued an ugly trend. While the manufacturing sector continued to expand, a point that should be made and is lost through much of the reporting of the popular press, the pace of sector expansion slowed dramatically in July.

Where economists surveyed by Bloomberg were looking for a reading of 54.3 on ISM’s Purchasing Managers Index (PMI), we instead received a measure of 50.9. It was a disturbing decline from June’s healthier mark of 55.3. Keeping in mind that 50.0 marks the break between expansion and contraction, the news rang a loud alarm from Silicon Valley to Detroit to Wall Street.

President Obama has publicly hung his great hope for American economic growth partly on a manufacturing revival. Much of our shared vision is based on manufacturers’ sales into the hot emerging markets of India and China. Yet recent months’ data has only offered a decelerating rate of expansion that is now near stalling. In fact, that seemed to be the broad-bearing message throughout the report. While there was little change in the number of respondents reporting better conditions generally speaking, there were also few reporting worse conditions. However, there was a marked increase in the number of respondents reporting similar conditions to June. What’s important is that there clearly seems to be a slowing in the manufacturing sector that could lead to a downturn in the months ahead.

For many industries, the summer months produce a seasonal lull, and this is especially the case for those doing business with Europe. Respondents qualitative responses seemed to show European weakness and U.S. softness, but growth in demand from Asia continued. In fact, the President’s hopes seemed somewhat supported, as the weakness that took the index lower was mostly due to lighter domestic demand.

We can be certain that the uncertainty caused by Washington DC’s fumbling of the debt ceiling legislation, nearly pushing the nation into default (an issue not yet resolved as I publish), froze business activity within the U.S. in July. Indeed, the New Orders Index slipped short of 50.0, to 49.2, from 51.6 in June. This could play an important role in taking the broader PMI measure under 50 in August. Also, hiring understandably shut down, with the Employment Index falling to 53.5, from 59.9 in June. Neither of these data points offer prospect for third quarter economic expansion, just days after Q1 GDP growth was revised sharply lower, to +0.4% from 1.9%, and Q2 growth was reported only up 1.3% against economist expectations for 1.9%.

The data might have been more poorly received Monday if not for the sigh of relief taken by global markets, thanks to what appears to be an imminent resolution to the U.S. debt uncertainty. However, investors should not overlook the fact that the pace of manufacturing expansion had been decelerating over recent months, even before the clouds of uncertainty gathered over Washington. Unfortunately for many American factory line workers, growth in overseas demand for U.S. goods might not necessarily result in a proportional increase in U.S. based jobs. With the cost of transportation high, tax rates often less favorable, and a hungry workforce at the destination of demand, that overseas growth might just employ more foreigners in the end.

This article should interest investors in Boeing (NYSE: BA), Raytheon (NYSE: RTN), Digital Globe (NYSE: DGI), GenCorp (NYSE: GY), General Dynamics (NYSE: GD), Goodrich (NYSE: GR), Northrop Grumman (NYSE: NOC), Honeywell (NYSE: HON), Lockheed Martin (NYSE: LMT), Rockwell Collins (NYSE: COL), L-3 Communications (NYSE: LLL), EMBRAER (NYSE: ERJ), FLIR Systems (Nasdaq: FLIR), BE Aerospace (Nasdaq: BEAV), TransDigm (NYSE: TDG), Spirit Aerosystems (NYSE: SPR), CAE (NYSE: CAE), Alliant Techsystems (NYSE: ATK), Hexcel (NYSE: HXL), Triumph Group (NYSE: TGI), Esterline Technologies (NYSE: ESL), Moog (NYSE: MOG-A), Heico (NYSE: HEI), Teledyne (NYSE: TDY), Curtiss-Wright (NYSE: CW), Cavco (Nasdaq: CVCO), Skyline (NYSE: SKY), Nobility Homes (Nasdaq: NOBH), Palm Harbor Homes (Nasdaq: PHHM), Mohawk Industries (NYSE: MHK), Interface (Nasdaq: IFSIA), Albany International (NYSE: AIN), Unifi (NYSE: UFI), Illinois Tool Works (NYSE: ITW), Tyco International (NYSE: TYC), Cummins (NYSE: CMI), Kubota (NYSE: KUB), Ingersoll-Rand (NYSE: IR), Dover (NYSE: DOV), ITT Corp. (NYSE: ITT), Flowserve (NYSE: FLS), Pall (NYSE: PLL), Dresser-Rand (NYSE: DRC), SPX (NYSE: SPW), Gardner Denver (NYSE: GDI), IDEX (NYSE: IEX), Nordson (Nasdaq: NDSN), Graco (NYSE: GGG), Actuant (NYSE: ATU), Middleby (Nasdaq: MIDD), ABB (NYSE: ABB), Eaton (NYSE: ETN), Nidec (NYSE: NJ), Rockwell Automation (NYSE: ROK), Ametek (NYSE: AME), Regal Beloit (NYSE: RBC), Thomas & Betts (NYSE: TMB), Woodward Governor (Nasdaq: WGOV), Caterpillar (NYSE: CAT), Deere (NYSE: DE), CNH (NYSE: CNH), Joy Global (Nasdaq: JOYG), Bucyrus (Nasdaq: BUCY), Agco (Nasdaq: AGCO), Emerson Electric (NYSE: EMR), Parker Hannifin (NYSE: PH), Roper Industries (NYSE: ROP), Pentair (NYSE: PNR), Waste Management (NYSE: WM), Republic Services (NYSE: RSG), Fastenal (Nasdaq: FAST), Vulcan Materials (NYSE: VMC), MDU Resources (NYSE: MDU), Martin Marietta Materials (NYSE: MLM), Owens Corning (NYSE: OC), Valspar (NYSE: VAL), Precision Castparts (NYSE: PCP), United States Steel (NYSE: X), Reliance Steel (NYSE: RS), NVR (NYSE: NVR), DR Horton (NYSE: DHI), Pulte (NYSE: PHM), Toll Brothers (NYSE: TOL), Hovnanian (NYSE: HOV), CRH (NYSE: CRH), CEMEX (NYSE: CX), Eagle Materials (NYSE: EXP), Fluor (NYSE: FLR), McDermott International (NYSE: MDR), Foster Wheeler (Nasdaq: FWLT), Empresas ICA (NYSE: ICA), Stanley Black & Decker (NYSE: SWK), Timken (NYSE: TKR), Kennametal (NYSE: KMT), Leucadia National (NYSE: LUK), Masco (NYSE: MAS), Weyerhaeuser (NYSE: WY), Quanta Services (NYSE: PWR), Chicago Bridge & Iron (NYSE: CBI), EMCOR (NYSE: EME), Snap-on (NYSE: SNA), Toro (NYSE: TTC), GM (NYSE: GM) and Ford (NYSE: F).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Boeing and ArcelorMittal (NYSE: BA, NYSE: MT) – A Closer Look Post Data

We’re playing catch-up… Wednesday’s earnings review highlighted reports from Boeing, ArcelorMittal, Delta Airlines, WellPoint, General Dynamics, Northrop Grumman and P.F. Chang’s China Bistro. The report that follows highlights the news and outlook for Boeing and ArcelorMittal.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers: Nasdaq: FUBC, NYSE: AHC, NYSE: ABD, Nasdaq: ACUR, Nasdaq: ACXM, Nasdaq: ADLR, NYSE: AEA, Nasdaq: AEGR, NYSE: AET, Nasdaq: AFFX, NYSE: AFL, Nasdaq: AKAM, NYSE: ALR, NYSE: ARE, NYSE: ATI, Nasdaq: AHGP, Nasdaq: ARLP, Nasdaq: EPAX, NYSE: DOX, Nasdaq: ARII, NYSE: APU, NYSE: AMP, Nasdaq: AMKR, NYSE: NLY, NYSE: MT, Nasdaq: AUDC, NYSE: AN, NYSE: AVB, NYSE: BMS, NYSE: BMC, NYSE: BA, Nasdaq: BOKF, NYSE: BYD, Nasdaq: BKBK, Nasdaq: BVSN, NYSE: COG, NYSE: CBG, Nasdaq: CHDN, Nasdaq: CTXS, NYSE: CLF, NYSE: CNO, Nasdaq: COHR, NYSE: COP, Nasdaq: CSGP, NYSE: CVD, Nasdaq: CROX, NYSE: CCI, NYSE: DAL, NYSE: DBD, NYSE: DOW, NYSE: DPS, NYSE: ENR, NYSE: EFX, NYSE: RE, Nasdaq: DAVE, Nasdaq: FLIC, NYSE: FLS, Nasdaq: FXCB, NYSE: GD, NYSE: GMR, Nasdaq: GLBC, Nasdaq: GMCR, NYSE: HGR, NYSE: HSP, Nasdaq: IBKC, NYSE: ISH, Nasdaq: LRCX, Nasdaq: LVLT, NYSE: LAD, NYSE: MRK, Nasdaq: MORN, NYSE: NMM, NYSE: NOC, NYSE: OII, NYSE: OI, Nasdaq: PFCB, NYSE: PX, NYSE: RA, Nasdaq: RNOW, NYSE: SFE, NYSE: SAP, NYSE: SEE, NYSE: SCI, Nasdaq: SFLY, Nasdaq: SRCL, NYSE: RGR, NYSE: SPN, NYSE: TER, Nasdaq: TEVA, Nasdaq: THQI, NYSE: TUP, Nasdaq: USMO, NYSE: V, NYSE: WLP, Nasdaq: WFM and NYSE: WYN.

Boeing and ArcelorMittal (NYSE: BA, NYSE: MT) – A Closer Look Post Data

Boeing
After a gap open Wednesday and a strong spike, the stock closed only fractionally higher. Boeing (NYSE: BA) shares were up more significantly through Friday midday trading though. Boeing reported better results than expected, enthusing and expanding its shareholder base. The company posted a turnaround in its commercial aircraft unit and also offered better guidance for its defense and aerospace business. But with higher fuel costs pressuring its commercial aircraft customers and tightening sovereign budgets pressuring its defense unit, we express caution. The stock is well off its May highs though and looks to have a solid technical support. Still, it’s the fundamental business I’m worried about moving forward. It’s most recent PEG ratio looks to be about 1.5, before adjustment for recent results, and is based on a long-term growth outlook of about 11.6%. Next year’s growth looks solid enough to support the stock, and given the company’s reinforcing guidance, the stock looks safe to hold over the short-term. However, I would not be adding to positions based on my concern that orders should slacken in a deteriorating global economic environment that seems probable in my macro view.

ArcelorMittal
The world’s largest steel maker now, ArcelorMittal (NYSE: MT) responded to investor concerns sparked by United States Steel (NYSE: X) and AK Steel (NYSE: AKS) Tuesday regarding current softness. MT said demand from China and U.S. automakers would pick-up the soft quarter so that the issue would not bear out into trend. Traditionally, automakers tend to close factories for a few weeks in the summer for maintenance work, and the Japanese shock also played a role in the temporary dip. As a result of the disaster though, new construction demand from Japan should support the steel market moving forward, especially for Japanese companies like Nippon Steel. Chinese consumption is seen increasing about 8.5% through 2011. Of course, ArcelorMittal and all the steelmakers are threatened by the debt debacle in the U.S. and further deterioration in Europe, and so I cannot be gung ho on steel nor MT today. The stock’s long-term chart also offers protection against short side risk though, and its valuation at a 0.5 PEG ratio is not particularly unappealing either. It’s the kind of cyclical idea that could take off on a good US debt deal that takes debt-downgrade risk off the table, but today the issue is still up in the air. The stock has been down all week and but is seeking stability today.

Others reporting earnings Wednesday: 1st United Bancorp (Nasdaq: FUBC), A.H. Belo (NYSE: AHC), Acco Brands (NYSE: ABD), Acura Pharmaceuticals (Nasdaq: ACUR), Acxiom (Nasdaq: ACXM), Adolor (Nasdaq: ADLR), Advance America Cash Advance (NYSE: AEA), Aegerion Pharmaceuticals (Nasdaq: AEGR), Aetna (NYSE: AET), Affymetrix (Nasdaq: AFFX), Aflac (NYSE: AFL), Akamai (Nasdaq: AKAM), Alere (NYSE: ALR), Alexandria Real Estate (NYSE: ARE), Allegheny Technologies (NYSE: ATI), Alliance Holdings (Nasdaq: AHGP), Alliance Resource Partners (Nasdaq: ARLP), Ambassadors Group (Nasdaq: EPAX), Amdocs (NYSE: DOX), American Railcar (Nasdaq: ARII), AmeriGas Partners (NYSE: APU), Ameriprise (NYSE: AMP), Amkor (Nasdaq: AMKR), Annaly Capital (NYSE: NLY), ArcelorMittal (NYSE: MT), Audiocodes (Nasdaq: AUDC), Autonation (NYSE: AN), AvalonBay Communities (NYSE: AVB), Bemis (NYSE: BMS), BMC Software (NYSE: BMC), Boeing (NYSE: BA), BOK Financial (Nasdaq: BOKF), Boyd Gaming (NYSE: BYD), Britton and Koontz Capital (Nasdaq: BKBK), BroadVision (Nasdaq: BVSN), Cabot Oil and Gas (NYSE: COG), CB Richard Ellis (NYSE: CBG), Churchill Downs (Nasdaq: CHDN), Citrix Systems (Nasdaq: CTXS), Cliffs Natural Resources (NYSE: CLF), CNO Financial (NYSE: CNO), Coherent (Nasdaq: COHR), ConocoPhillips (NYSE: COP), Costar Group (Nasdaq: CSGP), Covance (NYSE: CVD), Crocs (Nasdaq: CROX), Crown Castle Int’l (NYSE: CCI), Delta Airlines (NYSE: DAL), Diebold (NYSE: DBD), Dow Chemical (NYSE: DOW), Dr. Pepper Snapple (NYSE: DPS), Energizer (NYSE: ENR), Equifax (NYSE: EFX), Everest Re (NYSE: RE), Famous Dave’s (Nasdaq: DAVE), First of Long Island (Nasdaq: FLIC), Flowserve (NYSE: FLS), Fox Chase Bancorp (Nasdaq: FXCB), General Dynamics (NYSE: GD), General Maritime (NYSE: GMR), Global Crossing (Nasdaq: GLBC), Green Mountain Coffee (Nasdaq: GMCR), Hanger Orthopedic (NYSE: HGR), Hospira (NYSE: HSP), Iberiabank (Nasdaq: IBKC), International Shipholding (NYSE: ISH), Lam Research (Nasdaq: LRCX), Level 3 Communications (Nasdaq: LVLT), Lithia Motors (NYSE: LAD), Merck (NYSE: MRK), Morningstar (Nasdaq: MORN), Navios Maritime (NYSE: NMM), Northrop Grumman (NYSE: NOC), Oceaneering Int’l (NYSE: OII), Owens-Illinois (NYSE: OI), P.F. Chang’s China Bistro (Nasdaq: PFCB), Praxair (NYSE: PX), RailAmerica (NYSE: RA), RightNow Technology (Nasdaq: RNOW), Safeguard Scientifics (NYSE: SFE), SAP (NYSE: SAP), Sealed Air (NYSE: SEE), Service Corp. (NYSE: SCI), Shutterfly (Nasdaq: SFLY), Stericycle (Nasdaq: SRCL), Sturm Ruger (NYSE: RGR), Superior Energy (NYSE: SPN), Teradyne (NYSE: TER), Teva Pharmaceuticals (Nasdaq: TEVA), THQ (Nasdaq: THQI), Tupperware Brands (NYSE: TUP), USA Mobility (Nasdaq: USMO), Visa (NYSE: V), Wellpoint (NYSE: WLP), Whole Foods Market (Nasdaq: WFM), Wyndham Worldwide (NYSE: WYN) and more.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Home Builder Confidence Devastated, So Buy Housing Stocks Now

The National Association of Home Builders, in conjunction with Wells Fargo (NYSE: WFC), released its tally of builder confidence for June Wednesday morning. A relatively new factor acted like the last nail in the coffin of home builder confidence this month, sending almost all component measures toward record lows. Yet, “The Greek” still loves the shares of the best publicly traded home builders.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers: Nasdaq: ITIC, NYSE: BAC, OTC: FMCC.OB, OTC: FNMA.OB, NYSE: GS, NYSE: MS, NYSE: WFC, NYSE: TD, NYSE: SRS, NYSE: URE, NYSE: IGR, NYSE: XIN, Nasdaq: RYHRX, Nasdaq: TRREX, NYSE: TOL, NYSE: HOV, NYSE: DHI, NYSE: BZH, NYSE: LEN, NYSE: KBH, NYSE: PHM, NYSE: NVR, NYSE: GFA, NYSE: MDC, NYSE: RYL, NYSE: MTH, NYSE: BHS, NYSE: SPF, NYSE: MHO, AMEX: OHB, NYSE: VNQ, NYSE: PNC, NYSE: JPM, Nasdaq: HOFT, NYSE: ETH, NYSE: PIR, NYSE: WSM, NYSE: HD, NYSE: LOW, AMEX: VAZ, AMEX: NKR, AMEX: MZA, AMEX: NXE, AMEX: NFZ, Nasdaq: XNFZX, Nasdaq: FSAZX, Nasdaq: AVTR, NYSE: AIV, NYSE: EQR, NYSE: AVB, NYSE: UDR, NYSE: ESS, NYSE: CPT, NYSE: SNH, NYSE: BRE, NYSE: HME, NYSE: MAA, NYSE: ELS, NYSE: ACC, NYSE: CLP, Nasdaq: AGNC, NYSE: SUI, NYSE: AEC, NYSE: PMT and AMEX: TWO, NYSE: SPG.

Home Builder Confidence Devastated, So Buy Housing Stocks Now

Piling on home builder misery, rising construction materials costs simply took the pressure from intense to unbearable for home builders in June. The NAHB/Wells Fargo Housing Market Index fell 3 points to a reading of 13, as a softer than hoped for spring selling season also deflated builder mood moving into the summer.

We blamed it on the rain in April, the wettest on record. We looked toward gasoline prices in May, as they breached the point of no return for consumer spending impact. In June, we’ve still got wild weather in portions of the country, though arguably not any wilder than any other year now. We still have tough comparable property costs from heavy existing home inventory, weighed down by distressed property sales. And now, inflation everywhere but in housing offers the latest blow.

"It’s truly scary that the component replacement cost of homes - construction materials (plus labor) - might provide the ultimate floor for home prices."

With home prices still on the decline, prospective first-time buyers have little incentive to enter the market. Current home owners can’t get enough value from their existing home to leverage to a step up new home. On a relative basis, existing homes offer a better deal to most prospective buyers. Gasoline prices are on the decline, but construction materials costs are on the rise. It’s truly scary that the component replacement cost of homes - construction materials (plus labor) - might provide the ultimate floor for home prices. Builders certainly aren’t feeling good about that.

The NAHB reports that its surveyed home builders, which include many smaller builders who have borne the brunt of this downturn and have little capital access to emerge from it, noted declines in current sales conditions and in the traffic of prospective buyers in June; these component indices dropped 2 points each to index measures of 13 and 12, respectively. This thus led builders’ forward hopes back into despair, with the latest measure of sales expectations for the next six months dropping four points, to its lowest in history, at 15. The last time builders’ forward confidence marked this floor was in the heat of economic battle in March of 2009.

Looking across the nation’s regions, there was one bright spot, the Northeast, which saw its HMI rise 2 points to 17 in June. Across the West (down 4 points to index value of 12), Midwest (down 3 to 11) and South (down 2 to 14) there was nothing but bleakness. Most publicly traded builders have broad nationwide exposure, with important interests in the faster growing regions of the nation. Thus, Toll Brothers (NYSE: TOL), Pulte (NYSE: PHM), Hovnanian (NYSE: HOV), Beazer (NYSE: BZH), Lennar (NYSE: LEN) and D.R. Horton (NYSE: DHI) all have a presence in the Northeast.

Looking forward, we remind securities investors that there should be a divergence between real estate investment and homebuilder share investment in the earliest stages of recovery. It’s very important to understand that the NAHB’s survey includes many devastated smaller builders in its query, which explains the depth of despair; a mark of 50 signifies the break between a “good” or “poor” marketplace. The strife of the smaller builders, and the tightening of the capital markets, including bank funding, provides an improved landscape for large publicly traded builders. Capital access and market share are available to them. Thus, I expect that at the slightest sign of turn, homebuilder shares will take off. So they will precede broad real estate market recovery. The bar for real estate sales growth is now very low, and so we can expect it in the second half of this year, barring any new interfering extraordinary factor.



Editor's Note: Article should interest investors in Investors Title (Nasdaq: ITIC), Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), UltraShort Real Estate ProShares (NYSE: SRS), Ultra Real Estate ProShares (NYSE: URE), ING Clarion Global Real Estate Income Fund (NYSE: IGR), Xinyuan Real Estate Co. (NYSE: XIN), Rydex Real Estate Fund H (Nasdaq: RYHRX), T. Rowe Price Real Estate Fund (Nasdaq: TRREX), Toll Brothers (NYSE: TOL), Hovnanian (NYSE: HOV), D.R. Horton (NYSE: DHI), Beazer Homes (NYSE: BZH), Lennar (NYSE: LEN), K.B. Homes (NYSE: KBH), Pulte Homes (NYSE: PHM), NVR Inc. (NYSE: NVR), Gafisa SA (NYSE: GFA), MDC Holdings (NYSE: MDC), Ryland Group (NYSE: RYL), Meritage Homes (NYSE: MTH), Brookfield Homes (NYSE: BHS), Standard Pacific (NYSE: SPF), M/I Homes (NYSE: MHO), Orleans Homebuilders (AMEX: OHB), Vanguard REIT Index ETF (NYSE: VNQ), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), Hooker Furniture (Nasdaq: HOFT), Ethan Allen (NYSE: ETH), Pier 1 Imports (NYSE: PIR), Williams Sonoma (NYSE: WSM), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Nasdaq: XNFZX, Nasdaq: FSAZX, Avatar Holdings (Nasdaq: AVTR), Apartment Investment & Management (NYSE: AIV), Equity Residential (NYSE: EQR), Avalonbay Communities (NYSE: AVB), UDR Inc. (NYSE: UDR), Essex Property Trust (NYSE: ESS), Camden Property Trust (NYSE: CPT), Senior Housing Properties (NYSE: SNH), BRE Properties (NYSE: BRE), Home Properties (NYSE: HME), Mid-America Apartment (NYSE: MAA), Equity Lifestyle Properties (NYSE: ELS), American Campus Communities (NYSE: ACC), Colonial Properties (NYSE: CLP), American Capital Agency (Nasdaq: AGNC), Sun Communities (NYSE: SUI), Associated Estates (NYSE: AEC), PennyMac Mortgage (NYSE: PMT), Two Harbors (AMEX: TWO), Simon Property Group (NYSE: SPG).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.