Earnings

Eagle Eye Opener: Financial Origami; Cat Beats

Financial Origami: Japanese Exports Fold in On Themselves Again… Could Continue Through Year’s End (Bloomberg)

Investors who own Oriental equities awoke Monday to another gut-shot as Japanese exports were reported to have slid 10.3% from a year ago – much more than expected – triggering talk of another credit downgrade for the world’s third-largest economy. The ultimate fear here is that a Japanese economic contraction will continue through December and will trigger similar economic backsliding in emerging markets. So, through year’s end, investors with funds at risk in plays connected, even indirectly, to the Japanese economy should have an exit strategy in place.

Just Not Warm & Fuzzy Enough: Caterpillar Beats Estimates by 49% and Loses Ground (YahooFinance.com) 

In a sign that not all’s well in the investing world, Caterpillar (CAT) reported quarterly earnings on Monday of $2.54 per share, which beat Wall Street expectations of $1.71 by 49%. Unfortunately for investors in the construction and mining equipment maker, revenue fell short of expectations, coming in at $16.45 billion for the quarter – resulting in the company cutting full-year guidance from $9.25 to $9. The market responded by knocking CAT shares down prior to the opening of the U .S. markets. The reduction reflects management’s “pragmatic” view of 2013…

Eagle Eye Opener

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