It returns! SSWE is now back as a regular weekly feature. Here are the succinct summations of this week’s events for February 1 2013:

Positives:

1) Dow Jones Industrial Average crossed 14,000 for the first time since October 2007
2) 50% of large cap stocks reported earnings: 73% > profit projections, and 65% > sales estimates
3) Housing, consumer spending and business investment were stronger in Q4.
4) Revisions add 127,000 jobs to November/December NFP
5) S&P 500 rallied 5.2%, its best January since 1997
6) Worldwide, Equities added $2.6 trillion in value in January
7) Pfizer’s spinout of $2.2 Billion Zoetis reopens IPO market
8) Case Shiller index printed at 5 year highs
9) U of Michigan U.S. consumer sentiment rose to 73.8
10) US automakers posted double-digit sales gains for January: Ford +21.8$, Chrysler +16.4%, GM +15.9%
11) Personal income surged 2.6% versus expectations of a 0.8% rise, driven by “pre-cliff” special one-time dividends.
12) Senate approves bill that will allow new borrowing
13) Nikkei 225 is at its highest level since April 2010
14) Chinese (manufactured) manufacturing index expanded in January
15) ISM index rose to 53.1% from 50.2% in December

Negatives:

1) U.S. economy shrank for the first time in more than 3 years in Q4, with GDP falling at an annual rate of 0.1%
2) Q4 GDP negative caused by a sharp drop in government spending
3) Possible first ever filibuster from the GOP of a cabinet nominee, Chuck Hagel (DoD)
4) Unemployment ticked up marginally from 7.8% in December to 7.9% in January.
5) Suspending talks on our $16.4 trillion debt ceiling through May 19 (although some think this is a positive)
6) Clashes erupt in Egypt on second anniversary of uprising. 60+ people killed
7) Consumer Confidence plunges to lowest level in 14 months — 3rd straight monthly decline.
8) Merck saw a drop in Q4 earnings; stock drops 3% despite sea of green.
9) U.P.S. reports a loss on $3 billion noncash pension charge, forecasts lower 2013 profit
10) Spain’s IBEX 35 index fell a whopping 5.7% this week.
11) The outspoken, charismatic ex-mayor of New York City Ed Koch has passed away at 88.

Category: Markets

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.

10 Responses to “Succinct Summation of Week’s Events February 1 2013”

  1. JimRino says:

    Unemployment from 7.8 to 7.9.
    As the economy improves more people will seek work.
    Interesting the news media doesn’t report it that way.

  2. Joe Friday says:

    Dow Jones Industrial Average crossed 14,000 for the first time since October 2007

    And for perspective, in inflation-adjusted dollars, the DJIA needs to be well over 17,000 just to get back to even with where it was at the end of the Clinton administration in 2000.

  3. BigBlueCrab says:

    The same people that think that DOW 14k is a sign of the coming boom is the same people who believe
    there is actually a chicken wing shortage a week before the Super Bowl. ‘The money men” are just waiting for the same gullies to step back in so they can pound the rest of their retirement funds to dust. “Buy N Hold”, Real estate always goes up in the long term”, “Now’s a great time to buy”…oh well…

  4. boveri says:

    A selfish market bull would look at three of the top four negatives this week as a positive for continued Fed support of the stock market.

  5. eliz says:

    Positives:
    9) U of Michigan U.S. consumer sentiment rose to 73.8

    Negatives:
    7) Consumer Confidence plunges to lowest level in 14 months — 3rd straight monthly decline.

    Yeah. Uh-huh. What the? Clearly different questions and/or different populations.

    Investopedia: “What’s the difference between consumer confidence and consumer sentiment?”

  6. [...] – Succinct Summation Of The Week’s Events (Barry Ritholtz, The Big Picture) [...]

  7. love this, so glad it’s back (and i link to it in my friday rate recap: http://thebasispoint.com/2013/02/01/mortgage-rates-week-ended-february-1/)

  8. romerjt says:

    Your cod, haddock, and flounder is going to cost more and be less fresh as NOAA raises the limit on cod 77% . . . whether the fishing industry out of Gloucester, Portsmouth and other places in the Gulf of Maine survives seems unlikely. The rules to keep this from happening didn’t work although some blame the explosion in the seal population and to some extent the warmer water. On the upside this is great for lobsters and prices will continue to be low.
    http://www.gloucestertimes.com/local/x1525009790/Cod-limits-set-at-77-cut

  9. Joe Friday says:

    romerjt,

    Geez, that’s likely to only spur even more of the already rampant counterfeiting of fish by mongers and restaurants, and unless you’ve got a mobile DNA lab in the parking lot, you won’t know for sure if your “Le Filet de Sole Amandine” is actually tilapia. Since lobster is now so reasonable, probably better just to order a whole lobster, as they would be far more difficult to counterfeit.