JPM Follows on Heels of GS and INTC

That was a terrific rally yesterday. Intel’s (Nasdaq:INTC) earnings truly were a surprise. We’ve now seen the two biggest up days in 6 weeks come on consecutive days. The major indices had been looking weak, but not anymore. 
JP Morgan (NYSE:JPM) is the latest company to beat earnings expectations. But let’s not forget that it’s widely believed that analysts really low-balled the company earnings estimates across the board for the 2nd Quarter, so companies should be besting them.
What matters is guidance going forward. That’s why Intel’s news was so surprising. 
*****China’s 2nd Quarter GDP number is out. The country grew at 7.9%, and may hit 10% by the 4th Quarter. Industrial production and fixed asset investment grew strongly. 
Several banks upped their growth forecasts for China today. 
I’ve seen some concern that lending is getting too loose in China and that a disaster is waiting to happen. But I’m not worried about that right now. China’s government has showed in the past that it’s pretty good at clamping down on lending standard when the economy gets too hot. 
(If you’re interested in tapping into the run-up in China stocks, check out my new report. Click here for your copy.) 
*****Despite all the good news this morning, the chinks in the armor are clear to see. The number of households facing foreclosure was up 15% in the first half of the year. As many 336,000 homeowners received a foreclosure notice in June.   
Year over year, foreclosure filings were up 33% in June. And they were up 5% just since May. 
Foreclosures are on the rise despite the government’s $50 billion program to assist loan modifications for troubled mortgage holders.  
This will no doubt weigh heavily on banks that still have outsized exposure to the sub-prime market and reinforces our strategy of looking for investment opportunity outside the housing and financial sectors, JPM and GS notwithstanding. 
Ian Wyatt
Daily Profit 
P.S.-Just yesterday I released the updated Predictions Issue for Top Stock Insights readers. Find out which sectors and stocks will be hot over the next six months and which ones to stay far, far away from. Click here for more.

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