E Awful Thursday

My golden oldies IBM and AT&T (T) will jointly provide corporate users with cloud hosting. If the New Jersey techies who missed their deadline for our bluehost website's restoration do not come up with a solution soon I may just turn to these two companies which offer Cloud Satellite and Red Hat Open Shift to improve security and customer experience. Dear Ian Luca, dear Calvin, dear Allen please reply to my request to learn when the website will be operational. Or I will tell my readers about your lack of respect for customers who pay you for setting up their sites.  I need to know because I have trips planned and a daughter having an operation.

Big econometric data today should have boosted stock prices, but for one big negative: bad results from several major global shares, so the sell-off continued, but at a moderate level compared to Wednesday. Because we are now in a real Terrible Thursday, I will try to be brief about the macro numbers.

In Q3 the US gross national product went into a real recovery period, with growth at 7.4%. Using the Department of Commerce annual figures, this comes to 33.1%, vs the estimate of 32%. Remember that GNP fell 31.8% in Q2 so this is mostly catch-up. But it was a record all the same.

Upbeat too was the level of new unemployment claims, at 757,000 whereas the consensus forecast had been 778,000.

While the big 4 techs which have been sustaining the market report today, we don't own any of them. So here is the news from our companies:

*Nokia quarterly earnings at 6¢/sh was a penny below the consensus estimate of 7¢. It was up 20% from the nickel the Finnish telephone equipment maker earned a year earlier. But then NOK reported quarterly sales with missed by $100, mn at $6.19 bn. Sales were also down by $100 mn from the level of the last Q3. All that would have not sunk the share had NOK not warned about gaps ahead in margins expected to fall to 9% from 9.5% in 2020 and to 0.07% to 10% next year, below the prior forecasts by NOK. This took the share down a massive 20.12% here. (It only fell 13% in European trading.)

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