Dan Celia: Do Earnings Reports, Gas Prices, China and Iran Headlines Predict Global Economic Slowdown?
PHILADELPHIA—Nationally syndicated host and biblical investing authority Dan Celia said today that headlines about earnings reports, gas prices, China, Iran and global growth will be the top economic newsmakers this week.
Celia discusses these and other global and economic headlines on his daily, three-hour “Financial Issues” program, heard on about 650 radio stations nationwide, as well as several television networks.
“We’re expecting over 140 different S&P companies reporting,” Celia said. “That will bring the grand total of S&P companies reporting by the end of this week to about 200. Out of the companies that reported last week, 78% either met or beat expectations. Hopefully, that trend will continue. If we listen to some media, we may think that earnings are falling into a black hole. That is not the case at all. In the beginning of the week, we saw oil surge about 3% higher. That’s one of the largest increases we have seen in over a year, and we are continuing to see that oil surge. Additionally, Iran is threatening to close down the Strait of Hormuz.
“One of the biggest issues I’m concerned about is China,” Celia added. “China is buying approximately 3.6 million barrels of oil a week from Iran. That is a problem. Most of the sales from Iran are to China, India and Turkey. Turkey is saying they will not comply and continue to buy oil from Iran. Global growth is still our biggest worry, or at least my biggest worry. It looks like things continue to worsen around the globe, and things are starting to slow a bit more significantly here in the U.S. Higher gasoline prices will not help. This will act like a tax on the American consumer, and that will be a problem as well. In my opinion, it’s likely that the majority of this year’s growth has already been put in, and we might not see much more through the next three quarters.”
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