Out Fox The $treet

Still amuses us that the market is more focused with Greece than China and/or Japan. China is the number 2 economy and it's stock market has slumped since mid April with fears of rate tightening caused by inflation. With the significant drop in oil prices over the last few months, those inflation fears are starting to subside. Japan recently dropped to the number 3 economy and was devastated with the March earthquake and tsunami. The combination of which sent industrial production down some 15%. Production is expected come close to the February levels in June. Instead of looking at Japan coming back online and China beginning to push back to growth mode, the SP500 is slumping for what would be an 8th straight week  if not for a minuscule gain last week. What is concerning the markets the debt problems in Europe and more specifically Greece. Yet, both the EU and IMF have pledged to ensure that Greece doesn't fail and cause and collapse of the financial markets in Europe. W...

In a sign that the global economy will return to normal production levels in June, Toyota now expects to hit production levels approaching 90 percent. Considering Toyota is the largest producer in Japan, this return to normalcy should shift the global auto market back into balance. Competitors could likely make up any difference at those levels. After weak May manufacturing numbers spoked the market, the June numbers should be predictably better. The market doesn't act like the facts matter, but the data should naturally improve considering the major impact to both jobs and the growth numbers have been the auto sector. The industry will undoubtedly see higher numbers possibly approaching February numbers prior to the quake. Outside autos, no evidence exists that a significant slowdown is under way around the world. Heck, even Dr. Copper has lurched back to $4.13/lb signaling strong demand. Copper bottomed out in mid May most likely when global production especially in Japan saw...

As world economies limp through weak data over the last two months, the market needs to look no further then Japan. After the March 11th earthquake and tsunami, industrial production plunged 15.5%. In April, it only bounced back 1%. While better then a decline, it was still a anemic rebound considering the huge plunge. Clearly signals of the short term impact to the global economy. The good news though is that companies in Japan expect a major recovery in May and June. The May industrial production number is expected to soar by 8% and June up over 7.7%. Nearly back to the pre quake levels at that point. Output rose 1.0 percent last month, below analysts' median 2.8 percent forecast, but manufacturers sharply increased their forecast for May, predicting output would rise 8.0 percent compared with the previous 2.7 percent forecast, data from the Ministry of Economy, Trade and Industry showed on Tuesday. Companies expect the recovery to continue in June with production seen ris...

At least that is what most experts continue to report. Market keeps getting crushed despite most of the experts downplaying all the risks on radiation. Use your own judgement on the risk of a radiation crisis in Japan, but the risks seem a lot lower then the panic on the street. Naturally I wouldn't want to hang around within 50 miles of the Fukushima plant and take even a 5% risk, but that doesn't mean investors should flee stocks. Whats absurd today is the market swooned on reports from a EU energy minister called the situations a 'catastrophe'. Though he was only throwing in his conjecture of the whole situation the market took it to mean a radiation catastrophe was just starting. Now we're hearing news that the Japanese utility has just about got a new power line to the location that could hopefully turn the cooling system back on. The new remains fluid, but the Chernobyl situation doesn't appear on the table and if so stocks are very cheap. Watch the  T...