Here is this week’s succinct summation

Positives

1) Solid start for Q3 earnings vs expectations
2) Philly Fed 6 mo outlook rises to highest since Apr
3) Home builder sentiment up to 4 mo high
4) Housing starts rise, good for GDP, permits drop, good as we don’t need new homes
5) German IFO at highest since May ’07 and Euro Zone mfr’g index up even with rise in Euro
6) Solid Q3 Chinese GDP growth, PBOC hikes rates, goldilocks
7) Brazil unemployment rate falls to 6.2%, lowest in a long time vs 9% in Mar ’09 and 13.1% in ’03

Negatives

1) Philly mfr’g lackluster
2) Jobless Claims remain too high
3) MBA says purchases fall to 2 mo low and refi’s fall after last week’s 21% jump
4) Housing permits fall to lowest since Apr ’09, slows GDP, Starts rise, we don’t need new homes
5) IP falls for 1st time since June ’09
6) China inflation needs to be tamed
7) II and AAII showing rising bullishness 8)Euro Zone services index falls

Category: Markets, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

12 Responses to “Succinct Summation of the Week’s Events”

  1. leftback says:

    Next week we will see weak housing data, weak dollar, more QE chatter, POMOs, all assets bought.
    The following week, now that might be a different story….

  2. “…Fed’s Bullard could back easing in $100 billion steps – Reuters

    (Reuters) – St. Louis Federal Reserve President James Bullard said on Thursday he would favor Fed purchases of Treasury securities in $100 billion increments one Fed meeting at a time (every 45 days), if the U.S. central bank decides monetary easing is necessary.

    “If we do decide to go ahead with quantitative easing … we could think in units of about $100 billion,” he said.
    “And then I think we could give forward guidance for the next meeting that would suggest how likely the committee thinks it is to continue these purchases,” he added.
    Analysts anticipate around $500 billion in fresh Treasury buying to be announced at the Fed’s November 2-3 meeting, and some see a shopping spree of $1 trillion or more. Bullard, a voter on the Fed’s policy-setting panel this year, said the decision on further easing is “a tough call.” Bullard further said he does not think the Fed should set a ceiling on how much further easing it is willing to provide.

    “You just leave it open-ended,” he said. “People would impute what they think the Fed’s going to do based on their own forecasts… We would do the best we can to communicate how we think the program is evolving.” …”

    http://dailybail.com/home/fed-fighting-where-do-they-stand-on-qe2-check-out-this-qe-qu.html

  3. Alaric says:

    Bloomberg: “Blinder says Fed policy makers ‘making it up as they go along’….

  4. VennData says:

    Why Liberals Don’t Get the Tea Party Movement

    “…the proliferating classes in practical ethics and moral reasoning. These expose students to hypothetical conundrums involving individuals in surreal circumstances suddenly facing life and death decisions…”

    http://online.wsj.com/article/SB10001424052748704631504575531913602803980.html

    …same paper, same day…

    What the Tea Partiers Really Want

    “…To understand the anger of the tea-party movement, just imagine how you would feel if you learned that government physicists were building a particle accelerator that might, as a side effect of its experiments, nullify the law of gravity. Everything around us would float away, and the Earth itself would break apart…”

    http://online.wsj.com/article/SB10001424052748703673604575550243700895762.html

    If a tree falls in the forest, should me make an ideological paper out of it?

  5. [...] Comments here PERMALINK Category: MacroNotes. [...]

  6. Iron-man says:

    Interesting times as the G20 meets to decide what should happen with the globe’s currency war…

    Geithner has stated loud and clear that the dollar will not be weakened purposely. Is that a hint at a lower amount of QE than expected? Will that cause the dollar to rally? 3% of the people are bullish on the dollar, while 97% are bearish. Hasn’t the top 3% been controlling the worlds finances this whole time anyway?

    So many ppl are expecting the collapse of the dollar, but it’s not in the best interest of any0ne for that to happen, especially China. With the two largest economies of the world intertwined based on the US dollar, a collapse would cause a tailspin that would bring everyone down with it. If this happens, gold will return as the gauge for true value.

    But it really seems that they are trying to prevent that now. Either that or they are manipulating more markets to have one more pay day before the big downfall. If true, this will take all the money that citizens have put in to precious metals as a “safe haven”.

    As the media is plastered with gold and silver prices rising to entice the American public in to investing, and that they have as the metal bandwagon is full now. Take a close look… the big commercials have been increasing their short positions in metals, buyer beware!

    It seems fund money has ventured in to the commodity markets where the magnifying glass is much dirtier than the one used for the stock market. History tells you, wherever fund money goes, a bubble is close behind.

    Iron Man

  7. How about this news to drive the S&P 500 to 1300 by year end

    Diverted pipeline almost operational.. new naval base in place and inaugurated….war plans complete.. bomb away…

    http://www.bostonwealth.net/2010/10/23/diverted-pipeline-almost-complete-new-naval-base-in-place-war-plans-now-complete-bomb-away/

  8. bulfinch says:

    “If a tree falls in the forest, should me make an ideological paper out of it?”

    As long as it comes on a roll.

  9. See this Barry?

    Congressional Staffers Gain From Trading in Stocks

    <>

    http://tinyurl.com/2bf65v3

    Talk about a job perk!

  10. rktbrkr says:

    Foreclosure buyers could be responsible for legal expenses even with title ins…also FC buyers are backing away (surprise). Banks are going to have to take much bigger markdowns on their shadow inventory move move the stuff in this environment. And watch those insurance premiums soar!

    http://www.washingtonpost.com/wp-dyn/content/article/2010/10/22/AR2010102206757.html

  11. formerlawyer says:

    Good news:

    http://www.wired.com/gadgetlab/2010/10/berkeley-bionics-elegs/

    Bad News:

    Bank of America reviewed 102,000 foreclosure files in 17 days? Pull the other leg it’s got bells on.

    http://www.slate.com/id/2272078/pagenum/all/#p2

  12. formerlawyer says:

    Told you so:

    Reuters quoting WSJ, Bank of America “admits to some problems”
    http://www.reuters.com/article/idUSTRE69O04220101025