There is much to be done

The United States seem to have hard time recovering from their financial loses.  News from the New York Exchange shows that 21 stocks get lower for each 11 that get higher.  On the Nasdaq, the ratio was 16 to 12 negative.  

UBS stated that they had a total loss of $5.1 billion from the second quarter.  Swiss bank said that for their writedowns, they had $37.4 billion for the previous quarters.  More so, the aforementioned bank reported that they had a total net loss of around $329 million that is roughly about 358 million Swiss francs.  When compared last year, the bank was able to gain a 5.55 billion franc profit.  In total, the second-quarter loss was lower by around 3.8 billion francs in tax credits that reduced the loss.

On The Positive Side

Despite some financial setbacks, economists are optimistic that the U.S. economy will recover and grow faster than expected.  John Ryding from the RDQ Economics stated through an email that he is expecting that the second quarter real GDP will be revised from the reported 1.9% to about 2.75% to 3.0%.

There may be losses from the other companies, gains is also experienced.  Last years, revenue fell one percent for Stifel Financial Corp for their 72 cents a share; today the company reported gains of 60 cents per share.  

W.W. Grainger said that they had an 11% rise in their daily sales last July not mentioning their one percent point gain from the foreign exchange.  Fluor Corp., just like the aforementioned two, had earnings of around $1.13 per share that made their revenue rise 37%.  This is relatively higher than their 53 cents a share last year.  

As for LDK Co. Ltd, shared light after a solar wafer manufacturer said that their profits nearly tripled to $1.29 per share from their 45 cents during the second quarter last year.  With this, they now enjoy revenues of about 89%.  LDK expects their revenues to continue to rise from $486 million to $496 this third quarter and $1.65 to $1.75 billion for this year.

More gainers are United Technologies and McDermott International.  United Technologies confirmed the expectations for more than $60 billion in this year’s revenues.  They too have $4.80 to 4.95 earnings a share.

The Other Side of the Coin

Major European stock indexes were lower last Tuesday.  The FTSE in London fell back 0.13 % to 5,543.50.  The CAC 40 index in Paris also slid 0.36% to 4,518.48.  The DAX index of Germany had the same fate with 0.36% lost to 6,585.87.

As for the major Asian indexes, they too were lower last Tuesday.  Nikkei 225 index of Japan dropped 0.95% to 13,303.60.  For Hong Kong’s Hang Send index, it too slumped 1% to 21, 640.89.