A trough for China? Third-quarter gross domestic product at 7.4 percent growth compared to a year ago, the slowest growth in several years. But compared to the second quarter, GDP grew 2.2 percent. That implies a full-year growth rate of 8.8 percent.
In other words, the third quarter may be the trough for China's GDP. Retail sales were up 14.2 percent, better than expected, and industrial production was up 9.2 percent, above consensus. Those are important components of GDP ... that indicates GDP will be growing quarter-over-quarter. (Read More: China Economy Hits Bottom, Is It Time to Buy Stocks? )
I'm well aware of the skepticism about China's economy ... many are, but even the skeptics concede we may be approaching a bottom. ISI, which have also been skeptical of a recovery, wrote this morning: "At best, we think China's economy will be stabilizing at a low rate in (the fourth quarter 2012)."
More attention to the economy likely coming from China. The National Communist Party Congress is scheduled for Nov. 8. That's when the leadership will likely be replaced. Once the transition is complete, many are expecting the new leadership to get more aggressive on the economy.
Speaking of troughs: With 20 percent of the S&P 500 index reporting; third-quarter earnings growth is POSITIVE at 0.56 percent. That's right: positive . Ninety-eight companies have reported so far, and 62 percent are beating expectations, in line with the historical average. Fourth-quarter earnings growth is expected to be 9.67 percent. (Read More: See CNBC.com's Complete Earnings Coverage .)
—By CNBC's Bob Pisani; Follow Him on Twitter @BobPisani
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