The Best of Kass
Among his posts this past week, Kass explained why Apple's Black Friday sale was no big deal and why recent global economic data contradict the doomsayers.
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Originally published on Friday, Nov. 23 at 8:17 a.m. EST.
And speaking of Apple (AAPL) , the company's Black Friday savings is only $7 on earphones to $101 on a $1,600 laptop -- kind of a so-what sale.
I would construe the lack of big Black Friday sales at Apple as a thin reed but mildly positive indicator that demand is quite strong.
At the time of publication, Kass was long AAPL .
The World Keeps Turning
Originally published on Friday, Nov. 23 at 7:39 a.m. EST.
For those who had better things to do (and I hope it was all of you) and hadn't seen my posts on early Thursday morning, there was important economic data out of China and Europe on Wednesday evening and the following morning.
There were positive data from China on Wednesday evening, suggesting that China's economic growth has bottomed and is mildly accelerating. To some degree, an improving economy in China underpins global economic activity. In response to the data release, China's equity market cut its decline and has risen further overnight.
The flash November HSBC manufacturing index for China was 50.4 vs. 49.5 in October. The current reading is the best in 13 months and signals that the government's manufacturing index to be released Nov. 30 should be above 50 for its second straight month. Other metrics as well point to an improving Chinese economy -- for instance, retail sales, industrial production and money supply growth have all accelerated year over year based on October data, and exports in October grew at their fastest pace in the last five months.
On the negative side, the turn in China's economy likely reduces the odds of further monetary easing anytime soon.
On any weakness in iShares FTSE/Xinhua China 25 Index Fund (FXI) , I plan to add. (I initiated my long a few days ago.)
And in the Eurozone
The euro area composite (manufacturing and services) flash index for November was released Thursday morning. The index was 45.8 vs. expectations of 45.7 and October's 45.7. The manufacturing sector was strong, with that component lifting by 0.7 points in November, and the service component was modestly weak, declining 0.3 points. The improvement in the manufacturing component was broad based, as the employment/new orders/production metrics all increased in November.