Archive - Oct 22, 2012 - Story

Last night, in a spontaneous moment of clarity, the ZH brain trust tweeted the following:

Tomorrow on deck are revenue misses from CAT, TXN, FCX, BTU and others

— zerohedge (@zerohedge) October 22, 2012

So far we had our first "others" when Hasbro missed the topline, printing revenues of $1.35 billion vs expectations of $1.38 billion, but more importantly here comes CAT, with a whopper of a topline miss, worse than even the recent preannouncements could predict.

• CAT REVENUES $16.45 BILLION, EXP. $16.74 BILLION, EPS$ 2.54, EXP. $2.22
• CAT SEES 2012 EPS $9.00-$9.25, PREVIOUSLY HAD SEEN $9.60
• CAT SEES 2012 REVENUES OF $66 BILLION, PREVIOUSLY HAD SEEN $68-70 BILLION

• Dead Heat for Romney, Obama (WSJ)
• The Cheerful Billionaire Who Thinks Obama's a Socialist (Businessweek)
• "Get to work, Mr. Japanese Chairman": Japan Exports Tumble 10% as Maehara Presses BOJ to Ease (Bloomberg)
• Chinese Investors Fear Chill in Canada (WSJ)
• Rosneft Buys BP’s TNK-BP Stake for $26 Billion in Cash, Shares (Bloomberg)
• Hong Kong Defends Its Currency Peg for First Time Since 2009 (Bloomberg)
• Democrats threaten payroll tax cut consensus (FT)
• Spain's Rajoy gets mixed message in regional votes (Reuters)
• Merkel to warn UK on Europe budget veto (FT)
• Netanyahu says doesn't know of any U.S.-Iran talks (Reuters)... neither does Iran, so near certainty
• Der Kurrency Tsar: ECB’s Knot Backs Schaeuble Call for Stronger EU Budget Power (Bloomberg)
• Fannie Mae Limiting Loans Helps JPMorgan Mortgage Profits (Bloomberg)

Once again confusion is rife overnight, following yesterday's main European event, Spain's first "mixed" regional election, which saw Rajoy's PP party in his home state of Galicia eeking a majority by a few seats, offset by wins for nationalist parties in the Basque Country. The immediate read here is that the Galician win is an endorsement of Rajoy's "austerity poilicies" and thus EUR positive (which have yet to be actually implemented as Spanish spending continues to rise, as tax revenues continue to drop), yet it makes the likelihood that Spain requests a bailout before the Spanish regional election on November 25, which is about secession, virtually nil, and thus SPGB negative. Furthermore as Bank of America points out "some euro-area govts may remain reluctant to support Spain’s request as long as yields continue to be low, banks haven’t been recapitalized; probably reinforced by Catalonia elections" but that is a reality tale for another day - the "market" can only handle so much.