Companies Reporting Earnings Tuesday -- January 19, 2015; Don't Cry For Me -- Argentina's Bloody Hell

Disclaimer.

BHI, expectation, $1.07:

Baker Hughes, which agreed to a merger with rival Halliburton for $34.6 billion in November, reported fourth quarter earnings of $1.19 on an adjusted basis, ahead of analysts $1.10 consensus estimates for the period. 

HAL, expectation, $1.10:

Oilfield services giant Halliburton posted stronger fourth quarter revenue and earnings Tuesday, but warned that slumping crude oil prices had weakened its outlook for 2015.

The company said revenue rose 14.8% to nearly 8.8 billion from $7.6 billion in the fourth quarter of 2014. Net income climbed 13.8% to $905 million from $795 million in the year ago quarter. For the full year, revenue rose 12% to $32.9 billion and adjusted net income rose 28% to $4.02 a share.

NFLX, expectation, 45 cents, after market close.

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Hey, It's Just A Blip

Don't Worry, Be Happy

The spin never ceases to amaze me. Reuters reports that US retail sales recorded their largest decline in 11 months in December and then call it a blip. The link:

U.S. retail sales recorded their largest decline in 11 months in December as demand fell almost across the board, tempering expectations for a sharp acceleration in consumer spending in the fourth quarter.

Economists, however, cautioned against reading too much into the surprise weakness, noting that holiday spending made it difficult to smooth December data for seasonal fluctuations.

Isn't that true every December? Why was this December different?  

One thing that is different: China's GDP is slumping also -- now down to 7.2% -- not much better than the 5% the US reported last quarter (after several revisions, several adjustments, several panicky phone calls....

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Global Warming Hits Brazil
But It's Bloody Hell For Argentinian Women

Reuters is reporting:

Rolling blackouts swept across parts of Brazil on Monday as the grid operator ordered select power cuts to avoid a larger crisis, drawing attention to a fragile electric system that is buckling under the strains of record-breaking heat and dryness.

Grid operator ONS said it orchestrated 2,200 megawatts of controlled outages in eight states as the hottest day of the year in Sao Paulo, where the temperature hit 36.5 Celsius (97.7 Fahrenheit), and other southeastern cities led to surging demand from air conditioners and other power-hungry appliances.

Brazilian officials have repeatedly denied the need for energy rationing, even as the driest spell in more than 80 years drains hydropower reserves and forces the use of more costly thermal plants.

The drought has also raised the specter of water rationing in Sao Paulo, Brazil's business hub and South America's largest metropolitan area. 

This has to wreak havoc with the manufacturing industry. 

California went through a period of water rationing some years ago and managed quite well.

As we used to say in North Dakota, "it could be worse." In fact, in Argentina it is worse: the country has run out of tampons. I can't make this stuff up. Reuters is reporting:

Argentines have been complaining for a while now about the country's product shortages. And, until recently, the government has managed to brush aside such protests, which have centered around Argentina's import restrictions.

Well until, that is, the country's 20.6 million women couldn't find their favorite tampons earlier this month - during the height of summer. 

"For 20 days, we simply couldn't source any tampons from wholesalers," said Ariel, a 29-year old pharmacy owner. 

To be sure, Argentina's tampon squeeze is a far cry from shortages plaguing Venezuela and Cuba. But it has managed to launch a debate about the country's tight control of imports and foreign currency.(Imports were down 11 percent during the first 11 months of 2014, the latest period for which data is available.) 

"... a far cry from shortages plaguing Venezuela and Cuba." Really? I had not heard of the tampon shortage in any other country until now, though I vaguely recall this was an issue for the Russians many, many years ago. Just for the fun of it, do a google search -- Argentina tampon shortage -- you will be quite amazed.