Succinct Summations week ending May 10, 2013.

Positives:

1. S&P 500 and the Dow continue their ascent, both hitting new all-time highs.
2. U.S. weekly jobless claims come in at their lowest reading since January 2008. 323K v expectations of 335k.
3. Yen weakens to 100 v the dollar for the first time in 4 years.
4. Nikkei tops 14,000, highest level in nearly 5 years (gained 6.7% for the week).
5. Dow Jones Industrial Average has not had a losing streak of 3 days this year — longest such streak since 1958.
6. The German Dax hits highest levels ever as German factory orders for March grow 2.2% v expectations of a decline of 0.5%.
7. Bank of Korea joins the party, cuts key interest rate to 2.5% from 2.75%.
8. This was the strongest week for equity-fund inflows in 8 weeks
9. Housing remains a tailwind as MBA mortgage applications climbed 7% week-over-week, rising for the 5th consecutive weak.
10. Over the last 6 trading days, the 10-year yield has had its biggest positive move since March 2012 (via bespoke).

Negatives:

1. April retail sales gain 2.8% v expectations of +3.5%.
2. Ira Sohn conference consensus is for a melt-up means long side may be getting crowded
3. Wholesale sales came in weak, falling 1.6% month-over-month v expectations of 0.1% growth.
4. Job openings fell in March to 3.84M from 3.90M in February. This did however beat expectations for 3.77M job openings.
5. The hiring rate declined to 3.2% from 3.3%, pretty benign.

 

Category: Markets

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7 Responses to “Succinct Summation of Week Events (May 10, 2013)”

  1. Concerned Neighbour says:

    Having just witnessed the umpteenth miracle pump into the close of the last few years, I found this article and Mr. Bernanke’s quotes even more amusing than normal.

    Bernanke: Fed monitoring ‘reaching for yield’
    http://www.marketwatch.com/story/bernanke-fed-monitoring-reaching-for-yield-2013-05-10?link=MW_story_popular

    It’s like if a drug dealer were to shower everyone with crack and then say “we’re watching closely to make sure no one gets high”.

  2. Molesworth says:

    Negative 6. Cover of this week’s Economist: Wall Street is Back
    http://www.economist.com/

  3. [...] – Succinct Summation Of The Week’s Events (Barry Ritholtz, TheBigPicture) [...]

  4. Giovanni says:

    Seems like #8 should be under negatives.

  5. VennData says:

    Fed’s at the party and walking up the punch bowl and whispering, “We’re going to be running out soon.”

    http://online.wsj.com/article/SB10001424127887324744104578475273101471896.html

    You think “magic” destroyed the bond market Thursday and Friday? Nope. The Fed sent their first trial balloon out after the up-or-down statement.

    Your bonds are about to lose lots of value.

  6. mitchn says:

    Hey, as long as you’re not running billions of dollars, what’s the problem? When the music finally stops, you can put down the glass of punch, slink out the door, and hope the big boys were smart enough to cover their asses.