• Toyota (NYSE:TM) cut output with a halt to a Japanese production line, saying, "Though sales in some countries have been picking up, the outlook for global car demand is still uncertain"

• Williams-Sonoma (NYSE:WSM) reported a surprise second quarter earnings of 5 cents a share ex-items, versus Zacks projections of a 9 cents a share loss as revenues beat estimates at $672 million, ahead of expectations of $659 million.  The company expects 2009 sales of $2.84 to $2.94 billion

• JPMorgan (NYSE:JPM) analysts initiated coverage of Comcast (NASDAQ:CMCSA) with an "overweight" rating and a price target of $19

• Jefferies Group (NYSE:JEF) began coverage of Visa (NYSE:V) and MasterCard (NYSE:MA) with "buy" ratings    • Sony (NYSE:SNE) announced its e-reader, the Sony Reader Daily Edition, priced at $399, $100 more than Amazon.com (NASDAQ:AMZN) Kindle's entry-level version. A December launch is planned

Zacks Investment Research

By Cees Bruggemans

The SARB decision last week to resume cutting interest rates is interesting, given that our CPI inflation is likely to only modestly decrease further towards 5% next year, even as global growth keeps signaling its return and our own economy likewise signals a turn in progress.

What does that make the SARB action?

Are we being unnecessarily impatient with results, reminding of 2002-2003? At the time rates were probably cut too far, eventually inviting excessive consumption and import booms. Are we now running similar risks?

Or do current circumstances warrant vigorous policy support for longer, making sure the cycle does turn?

We certainly haven’t lacked with policy support measures boosting the economy in these trying times.

The SARB lowered interest rates by 450 points in six months through May 2009, while Treasury allowed an even bigger fiscal turnaround than imagined (from a budget surplus of

...

Gold pared gains on Friday as the euro retreated from highs against the dollar in the wake of second-quarter GDP data from the United States.

Spot gold was bid at $935.10 an ounce at 1325 GMT, against $933.30 an ounce late in New York on Thursday. It earlier hit a session high of $939.65. U.S. gold futures for August delivery on the COMEX division of the New York Mercantile Exchange edged up 50 cents to $935.40 an ounce.

The euro gave up ground against the U.S. currency after data released on Friday showed the U.S. economy contracted at a slower-than-expected pace in the second quarter, which analysts said backs views the recession is winding down.

“The U.S. GDP data was fairly good; it is still contracting but at a much slower pace, much better than the first quarter,” said Andrey Kryuchenkov, an analyst at VTB Capital.

“But the personal consumption data wasn’t so good,” he added.

...

Nissan losses lower than expected   The world’s third largest carmaker, Nissan Motor Company (NSANY), posted a modest net loss of 9 cents (¥4.06) per share in the first quarter of fiscal 2009. The loss was largely driven by the slump in global car demand, negative impact of a stronger yen, sharp decline in consumer confidence in all the major markets and product mix deterioration. Reported losses were significantly lower than the Zacks consensus forecast of 80 cents. Cost-cutting efforts, coupled with the government stimulus, helped Nissan curb losses in the quarter. The government of US, Germany, Japan and China are offering consumers credits, tax breaks and subsidies for trading in old cars for new fuel-efficient models. However, we remain concerned about Nissan’s prospects as these government incentives will not be available for much longer. Operating costs shrunk 37% year over year to $25.2 billion ...

By Cees Bruggemans

The green shoots are apparently reaching higher.

A cyclical gear change is underway, in which 2Q2009 will show much less of a GDP decline than 1Q2009. Either 3Q2009 or 4Q2009 will probably show the first cyclical uptick in our output, heralding renewed expansion.

In the US, the May non-farm payrolls gave their first positive surprise, declining by ‘only’ 345 000 jobs. The market had expected a decline of 550 000, which would have been a more modest improvement from the 660 000 average declines these past six months.

The April payroll decline was simultaneously revised down by 25 000, reinforcing the perception of reducing job losses. As job losses are a lagging indicator, these changes reinforce the view of the US economy stabilizing and shortly (3Q2009) coming out of recession.

US unemployment in

...

Dollar weakens against euro as U.S. equities gain… Oil recovers from 3-1/2 year low … Traders look to U.S. auto sales figures to guide platinum

Gold climbed 1 percent on Tuesday, reversing earlier losses, as the dollar weakened against the euro on firming U.S. equity markets and oil prices recovered from 3-1/2 year lows.

Spot gold was quoted at $781.70/783.70 an ounce at 1522 GMT, up from $770.60 an ounce late in New York on Monday.

“Oil recovered and the euro-dollar is higher,” said Wolfgang Wrzesniok-Rossbach, head of sales at precious metals group Heraeus. “Those are the main reasons for the move.”

“The outlook from here really depends on the leading indicators, as well as oil and the dollar,” he added.

Gold slipped in earlier trade, extending the previous session’s losses, as the dollar firmed against the euro and oil prices sank,

...