Wall Street Greek: China & Terror

Pre-Market Wire
Greek Factor: -1

While there are two economic reports on tap for 10:00 AM release, the pre-market is abuzz with terror threats and China travails. Chinese representatives have been active this weekend, following US legislative action last week and ahead of this week's EU-Asia summit. Meanwhile, the US government sounded the alarm on a new terror concern in Europe. But if you hold on long enough, you'll have Factory Orders and Pending Home Sales to guarantee your heart attack this Monday morning.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

(Tickers: NYSE: CMN, NYSE: SKY, Nasdaq: SCOK, NYSE: MOS, Nasdaq: ASIA, Nasdaq: PRASX, NYSE: PUA, NYSE: NWD, NYSE: PCP, NYSE: ATK, NYSE: LMT, NYSE: COL, Nasdaq: AVAV, Nasdaq: ATRO, NYSE: HON, Nasdaq: CRDN, NYSE: BA, NYSE: CGT, Nasdaq: MEAFX, Nasdaq: EBASX, Nasdaq: EVASX, Nasdaq: MACSX, Nasdaq: MATFX, NYSE: CZJ, Nasdaq: CHINA, PCX: FXI, PCX: CYB, NYSE: IWM, NYSE: TWM, NYSE: IWD, Nasdaq: AACFX, Nasdaq: GOPAX, Nasdaq: CHUSX, Nasdaq: GCHAX, Nasdaq: BUFCX, Nasdaq: DXHSX, Nasdaq: XHAOX, Nasdaq: NGCAX, Nasdaq: LNGZX, Nasdaq: DPCTX, Nasdaq: EICGX, Nasdaq: EPHCX, Nasdaq: FHKAX, Nasdaq: FHKCX, Nasdaq: IFCAX, Nasdaq: JCOAX, Nasdaq: XCAFX, Nasdaq: MCHFX, Nasdaq: NPCAX, Nasdaq: OBCAX, Nasdaq: UHPIX, Nasdaq: XGCHX, Nasdaq: TCWAX, Nasdaq: HPCHX, NYSE: ACH, Nasdaq: CHINA, Nasdaq: CBAK, Nasdaq: CSUN, NYSE: CHN, NYSE: GCH, Nasdaq: SOLF, Nasdaq: CAAS, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: NYX, NYSE: ICE, Nasdaq: NDAQ)

China & Terror - The Wolves Cry

Between terror threats levied against the region and the Chinese activity, Europe has its hands full this morning. Just when we thought the threat of sovereign default and euro disintegration were enough to handle! It looks like Europe and China will be the themes to our upcoming Monday release of "This Week," but for now, please chew on Monday's economic data slate and other market moving events.

China on my Mind
Greek Factor: 0

China's markets will be closed Monday, and through the week, but China is in the news nonetheless. The emerging giant is hosting the latest UN Climate Change Conference. Meanwhile, its Premier Wen Jiabao, visited Greece on his way to the EU-Asia Summit in Brussels. He offered some support for the Achilles heel of Europe. China's leader said his rich nation would support Greece's capital raising efforts, once it returned to the debt market. He also extended $5 billion in credit to Greek shipping companies that purchase Chinese made vessels. He said he offered all this because he would like to see a stable euro, but it seems he may also be worried Europe might go the route of the US with regard to his nation's currency status and his country's trading irregularities.

Terror Warnings
Greek Factor: -1

Has the boy cried wolf too often, or has it just been too long since the wolf last wandered into town, so that we've all forgotten about him and his teeth? The US government issued a travel warning to Americans traveling to Europe. Intercepts of communications and the presence of EU residents choosing to holiday in terrorist training camps had the US government sounding the alarm sirens this weekend. Americans are to be on the look out for Mumbai (Bombay) style attacks of terrorists armed with automatic weapons seeking havoc in crowded places throughout Europe, and a few specific locations (London is high on the list).

Yet, the interviews we've seen depict Americans as unalarmed. We worry though that the individuals chirping so confidently today, will be the same birds running around like chickens without heads when chaos does eventually break loose. Thus, we've come full circle and are now as unprepared mentally for terrorism as we were on 9/11.

Pay Attention!

The US government would not issue a warning like this these days if three conditions did not exist, no matter what the few representatives acting without license have said on camera. The government would raise this alarm only if a real threat existed; if it was relatively imminent or timing unpredictable and near; and if it was outside of its control to stop or contain. Therefore, yes, you should be concerned if you are traveling to Europe. Yes, the wolf is loose; and yes, the boy is crying loudly but should be obeyed.

Pending Home Sales
Greek Factor: 0

Two economic reports are scheduled for Monday morning. Look for the Pending Home Sales data release for the month of August at 10:00 AM. The release for July showed a 5.2% gain against June, to a mark of 79.4. July's reading benefited as it followed two months of decline in the absence of the housing stimulus. Housing continued soft through the summer though, and so we expect a temporary bounce of the dead-cat sort could be exposed in the Pending Home Sales data of the next couple months. It's old news though, and so understood.

Factory Orders
Greek Factor: -1

Factory Orders are due for release at 10:00 AM. Economists expect the data to show a 0.3% decline for August, given the Durable Goods Orders data that has already been released. Durables fell 1.3%, but when excluding transportation, rose by 2%. Motor Vehicles sales were so so in September, after a slip in August, and manufacturing was generally reported soft through the summer. Last week, ISM showed manufacturing remained sketchy in September.

Corporate Wire

The day's short earnings schedule includes Cantel Medical (NYSE: CMN), Skyline (NYSE: SKY), Sinocoking Coal & Coke (Nasdaq: SCOK) and The Mosaic Company (NYSE: MOS).

Relevant Tickers: Nasdaq: ASIA, Nasdaq: PRASX, NYSE: PUA, NYSE: NWD, Nasdaq: MEAFX, Nasdaq: EBASX, Nasdaq: EVASX, Nasdaq: MACSX, Nasdaq: MATFX, NYSE: CZJ, Nasdaq: CHINA, PCX: FXI, PCX: CYB, NYSE: IWM, NYSE: TWM, NYSE: IWD, Nasdaq: AACFX, Nasdaq: GOPAX, Nasdaq: CHUSX, Nasdaq: GCHAX, Nasdaq: BUFCX, Nasdaq: DXHSX, Nasdaq: XHAOX, Nasdaq: NGCAX, Nasdaq: LNGZX, Nasdaq: DPCTX, Nasdaq: EICGX, Nasdaq: EPHCX, Nasdaq: FHKAX, Nasdaq: FHKCX, Nasdaq: IFCAX, Nasdaq: JCOAX, Nasdaq: XCAFX, Nasdaq: MCHFX, Nasdaq: NPCAX, Nasdaq: OBCAX, Nasdaq: UHPIX, Nasdaq: XGCHX, Nasdaq: TCWAX, Nasdaq: HPCHX, NYSE: ACH, Nasdaq: CHINA, Nasdaq: CBAK, Nasdaq: CSUN, NYSE: CHN, NYSE: GCH, Nasdaq: SOLF, Nasdaq: CAAS, NYSE: PCP, NYSE: ATK, NYSE: LMT, NYSE: COL, Nasdaq: AVAV, Nasdaq: ATRO, NYSE: HON, Nasdaq: CRDN, NYSE: BA, NYSE: CGT.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.