On China, Financial Stability & S&P 500 Earnings

Hopes that China’s deflation problem is ending are premature, William reports. He explains why deflation remains a clear and present danger to China’s economy, and one that’s exportable to its trading partners. … Also: The Fed’s latest Financial Stability Report depicts a reassuringly resilient financial system. Melissa recaps the report’s main points, including its positive assessments in four main risk categories. … And: Joe reports that six months of improved net earnings revisions data suggest a trend reversal from years of negative readings to positive ones. Historically, such speedy reversals have led to positive readings for the next two years. This supports the S&P 500’s recent recovery to a record high.