US Business Sales (Excerpt)

Business sales of goods rose to a new record high of $15.3 trillion (saar) in the US during December. They are up 3.6% y/y. That’s all good news and supports our view that the y/y growth rates in both S&P 500 revenues and earnings should rebound from 1.1% and 1.4%, respectively, during Q3-2012 to 5%-7% this year. (So far, the Q4-2012 company reports suggest that revenues are up around 3.7% and earnings are up 6.3% compared to a year ago.) The resilience of the US economy late last year, as the dreaded fiscal cliff seemed imminent, was impressive.

Today's Morning Briefing: Asia's Bubble. (1) From Shanghai to Toronto. (2) Canada’s condo bubble is leaking. (3) China’s balance of payments math shows capital outflows. (4) Are manufacturers outshoring from China? (5) Capital inflows invading China’s neighbors. (6) US business sales growth held up well last year. (7) Retail sales are not so weak. (8) Investors remain bullish on retailers, and so do analysts. (More for subscribers.)