Consolidated volume of NYSE stocks is on track to be the slowest since Jan 2nd. With the completion of the Russell rebalancing by days end, volume will likely get a late day lift but Friday in the summer is clearly here and also coincides with another drop in the VIX to the lowest since Sept 12, the Friday before the Lehman bankruptcy.
Consumer Credit outstanding fell $14.8b in Sept seasonally adjusted, almost $5b more than expected and marks the 11th month in the past 12 of declines. At $2.456T outstanding, it is 4.9% below the record high in July '08. After a flat reading in Aug, (didn't fall b/c of the CARS program), non revolving debt outstanding fell by $4.9B. Revolving (mostly credit cards) balances outstanding fell by $9.9B. To fully put into perspective today's data, look at the current level of consumer credit (doesn't include mortgages, the biggest chunk of consumer credit) relative to GDP. As of Q3, it totaled 17.2%...
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June 26th, 2009 at 4:48 pm
Well Duh.
My recent experience is that little J6P on the street that CNBC thinks they are spoon feeding green shoots info along with the feds is suddenly extremely un-trusting of anyone.
And BS Obama is moving to the top of the list.
Besides, those that lost 40% ain’t sending good money after bad.
Look at the multiples and the dividends.
June 26th, 2009 at 5:56 pm
Friday. Summer. Enough said?
June 27th, 2009 at 1:12 am
Wish it was Friday. Summer. here…
June 27th, 2009 at 8:13 am
IMO the volume is a good proxy for investor skepticism. People on the street think the whole Wall Street mess is rigged/manipulated not unlike a casino. People on the street don’t have the discretionary money (anyway) nor the faith to send any more money to Wall Street.
Furthermore, I don’t think Wall Street will ever recover until it is cleaned-up. In many ways, Wall Street is to finance like the Republican Party is to politics. It is no surprise that both find themselves in the current situation. Today is a product of the last 27 years. The Dems certainly contributed as well. There is more than enough blame to go around.