Succinct summation of week’s events:

Positives:

1) UoM confidence jumps back to average level of the year as one year inflation expectations dip to 4.4% from 4.6%
2) 5 month low in mortgage rates leads to 9% jump in refi’s and 6.7% rise in purchase application
3) Germany and France lead solid Q1 GDP growth for Euro zone but sustainability in question
4) Hong Kong economy grew 11.2% annualized in Q1
5) China again raises reserve requirements after 5.3% CPI print and greater than expected loan growth.

Negatives:

1) CPI, PPI continue to rise with CPI now back above 3% y/o/y
2) Inflation takes bite out of April retail sales as sales ex gasoline rise just .2%
3) Initial Jobless Claims above 400k for a 5th straight week and 4 week average now at the highest since Nov
4) Weak US$, energy prices and higher Chinese labor costs lead to 11.1% y/o/y gain in Import Prices
5) NFIB small business optimism index falls to lowest since Sept with most growth categories lower and price index higher
6) BoE’s King says UK in stagflationary environment, is it headed here?
7) Political infighting amongst the EU, IMF, ECB and individual country members continue to drag out the fate of the Greek’s.

Category: Markets

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4 Responses to “Succinct Summation of Week’s Events (5.13.11)”

  1. icm63 says:

    Market forming a top, defensive stocks are rallying harder, when aggressive stocks are not so much..

    The informed is distributing stock float to the uniformed…Wyckoff rules

    http://www.readtheticker.com/Pages/Blog1.aspx?65tf=205_cycles-say-the-bears-are-about-to-roar-2011-05

  2. rktbrkr says:

    Just breezing thru the list the bads seem to outweigh the goods.

    Been wondering when the shiit will hit the fan when the Big banksters start selling their shadow foreclosures in earnest, here’s a clip about Redfin (CA-centric RE) seeing a dam break coming with BofA in particular, RE is already weak without the inevitable foreclosure dumping.

    I have taken two tours with Redfin agents in the past couple weeks… both agents told me that they would not buy now. Word on the street is the market IS rigged, the banks are playing games, and Bank of America is getting ready to start listing their tens of thousands of foreclosures from BAC/Countrywide after a nearly 1.5 year moratorium.

    The agents have seen what is in the pipeline and it’s a Hoover Dam that is about to break.

  3. VennData says:

    Killing bin Laden – By Daniel Henninger

    http://online.wsj.com/article/SB10001424052748703864204576315243189340416.html

    After he parrots William Kristol’s “Obama leads from behind” GOP media machine talking point – funny how these GOP media machine types like Henninger never site the source from where they cut and paste their rhetoric – he comes up with this utterly unrelated drivel…

    “…This does not mean we will be spared Mr. Obama’s goofy campaign claims for replacing carbon energy with windmills and solar panels…”

    Who’s “bowing to Saudi Arabia’a king” now? Daniel Hennigner that’s who.

  4. noahmckinnon says:

    Another potential positive:

    WASHINGTON — A former Securities and Exchange Commission enforcement official who has been accused of repeatedly blocking efforts to investigate R. Allen Stanford, the Houston financier charged with running a $7 billion Ponzi scheme, is the subject of a federal criminal inquiry for having done legal work for Mr. Stanford after leaving the S.E.C., government officials said Friday.

    The former official, Spencer C. Barasch, is now a private-sector lawyer in Texas. He has represented clients dealing with the agency, including a defendant charged last month with financial fraud by the S.E.C. in federal court in Dallas.

    https://www.nytimes.com/2011/05/14/business/14sec.html?_r=1&partner=rss&emc=rss

    Alas, I have little hope he’ll see anything more than a slap on the wrist.