- As far as I am concerned, Texas Instruments' (TXN) mid-quarter update supported early-inning warnings from companies, and shouts, "the global economy is in limbo and at risk of downside surprises." Specific areas of concern included, first, "timely actions" to reduce costs. This implies weaker-than-expected demand will be around for a bit, and that management does not want to miss on another quarter. The second worry is that most orders are tracking below mid-range of expectations. A single part of the business, wireless, is holding the company afloat, instead of broader strength.
- The Fed is likely to cut its economic forecasts Thursday to justify fresh easing. How does that play in the election? President Obama has been surging in the polls of late, but reduced targets from the Fed once again -- led by a person the president reappointed -- could be a benefit to Republican nominee Mitt Romney. Watch oil-related stocks for a bid. By the way, do you even remember what the Fed did with its growth targets months ago? Here's
- Be mindful of the architecture of easing: If the Fed just buys Treasuries , leaving out mortgage-backed securities, there will be disappointment.
- Reiteration: Retail stocks are looking too toppy for my tastes, especially into the slow months after the back-to-school season and before the holidays. I have no bones to pick here in putting on a short in Decker's Outdoor (DECK).