Succinct Summations for the week ending May 24. Very light data week despite all the noise.

Positives:

1. U.S. jobless claims fell 23k to 340k v expectations of 345k.
2. Housing remains a significant tailwind in the U.S. as existing home sales increase 0.6% m/o/m in April to 4.94M units, the highest reading since November 2009.
3. U.S. new home sales rose 2.3% m/o/m in April to 454k versus expectations of 425k.
4. U.S. April Durable goods orders shows a nice beat, showing a rise of 3.3% v expectations of +1.5%.
5. Durable good ex-trans rose 1.3% v expectations of +0.5%
6. Dow Jones had gone a record 100 days without a 3 day losing streak, that was snapped this week (market could use a breather).
7. Despite a very noisy week, the S&P 500 is up >15% YTD, through May!

Negatives:

1. The Nikkei had a violent selloff Wednesday night, selling off 12.5% peak to trough.
2. The 7% overnight down move is the equivalent of 1,117 Dow points. Only the 10th time in the last 50 years the Nikkei declined more than 7% in a single day.
3. Wednesday saw a nasty reversal in the market with the Dow dropping nearly 300 points from the highs of the day to the lows.
4. The S&P 500 had not been up 1%only to finish down 1% since August 2011 (market came off the lows at the end of day to avoid this).
5. China’s May flash PMI comes in at 49.6 v expectations of 50.4, a 7 month low for the worlds second biggest economy, signaling contraction.
6. Japan’s April exports rose 3.8% y/o/y v expectations of 5.4%. C’mon Abe.
7. Secular decline in the PC market is reaffirmed by HP, whose PC sales fell (Wow!) 20% from a year ago.
8. Bernanke had a difficult time communicating the Fed’s intentions. Mr. Market had a difficult time digesting the fact that tapering can begin as early as this summer.
9. U.S. core capital shipments came in light than expected, declining 1.5% m/o/m v expectations or a 0.5% drop.

Thanks, Mike!

Category: Markets

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7 Responses to “Succinct Summations of Week’s Events (May 24 2013)”

  1. willid3 says:

    noticed that the oil ‘pricing scam’ has landed here .
    http://ewallstreeter.com/the-oil-price-fixing-scandal-has-landed-in-the-u-s-4544/

    also found this, didnt know that oil was priced much like LIBOR was/is, in that its done by traders reporting their prices, not based on real data
    http://www.marketplace.org/topics/economy/british-lawmakers-concerned-over-oil-price-reporting

    • Frwip says:

      Yup.

      For oil, Platts works very much like the BBA for interbank rates. Informal voluntary reporting by the participants themselves.

      Many oil contracts are highly confidential and off market. Neither parties want to publish information in attributable form for many reasons, some very simple (e.g. large discounts/premiums vs. OSP), some quite complicated (destination restrictions, for instance).

      So companies like Platts do their business of making the rounds every day with theirs “informants” to collect data on the latest deals on a semi-informal basis and publish them in aggregate for a price, on top of open market info.

  2. dctodd27 says:

    re: Positives #6: Dow closed up today…I think that record in still intact…

  3. key-bit says:

    I thought of Mr. Ritholtz when I watched this:
    http://www.thedailyshow.com/watch/thu-may-23-2013/priorities-usa—too-big-to-jail

    My hope was the President was waiting until the Markets recovered to prosecute, then I hoped after re-election he would have nothing to lose. This is just sad.

    • Petey Wheatstraw says:

      I hoped the same, for a moment. Then, I realized that he has nothing to lose by supporting the status quo. He did have a mandate for change. Sad, indeed.

    • Frwip says:

      He needs to retire, don’t you know : book deals, charitable foundation, speaking engagements, galas, etc ?

  4. [...] A look back at the economic week that was.  (Big Picture) [...]