Succinct Summations week ending February 7, 2014

Positives:

1. The market finished the week in the green despite getting off to the worst February start since 1983.
2. Bulls get nervous, pulling a historic $14.8B out of equity funds. That fear helped create the basis for the bounce we saw.
3. The unemployment rate fell from 6.7% to 6.6%.
4. Nissan and Chrysler (best January in 6 years) had good #’s, up 8% and 12% respectively
5. U.S. non-manufacturing ISM PMI came in at 54 v 53.7 expected, prior 53.
6. Factory orders fell 1.5% which was less than expected.
7. Initial jobless claims fell to 331k, less than expected and down from an upward-revised 351k.
8. Car sales in France & Spain rose for the fifth straight month in January.

Negatives:

1. Monday was the worst start to February since 1983.
2. U.S. only added 113k jobs in January v the 189k expected; December and January were the worst 2-month stretch of job growth in 3 years.
3. EM has been ravaged with 14 straight weeks of outflows and the biggest since 2010 (Contra: opportunity?)
4. The Dow has had 7 triple digit declines since the beginning of the year; Nasdaq had its first 100-point down day since late 2011.
5. ADP payrolls came in at 175k v 185 k expected, December numbers were revised down;
6. Two of the worst five days over the past 23 months from the Russell 2000 have come in the last 10 days.
7. Ford and GM January car sales were down 7.5% and 12% v expectations of ~2.5% decline for each; GM, the second biggest U.S. auto maker saw Q4 profits decline 13%
8. November factory orders were revised down from a 1.8% rise to a 1.5% rise.
9. ISM Manufacturing lowest since June and biggest miss v expectations since October 2008. Drop in new orders index in December was the largest since 1980
10. More than 1 in 6 men ages 25-54 don’t have a job.

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.

8 Responses to “Succinct Summation of Weeks Events (2/7/14)”

  1. Concerned Neighbour says:

    Bounce? That’s quite the bounce: over 3% since the Wednesday lows. That said, I’m sure we can all agree fundamentals dramatically improved since then. Right?

    These “markets” continue to require no time to digest losses. Every single dip is a “lifetime buying opportunity”. Who these people are that are rushing to buy blue chips like PG at 20 P/E/negative tangible book value/current ratio below 1 are a mystery to me. The institutions/algorithms at play are not, however.

    New all-time highs by the close of next week? And a good Olympic watching weekend to all.

  2. VennData says:

    Positive: We learn that suddenly, Boehner and the GOP doesn’t trust the president.

    http://news.yahoo.com/white-house-hits-back-republicans-immigration-39-trust-181755168.html

    So all these years Boehner and the GOP at HAVE trusted Obama, but this week they decided they didn’t.

    This should wake up real, patriotic conservatives. They should see that the guys they voted for have trusted Obama for five years. That is too much.

    It’s time to leave the GOP if you’re a real conservative. what kind of man are you? An Obama trusting Republican?

    • fearlesspectator says:

      Your satire is appreciated and well placed. I am sure the real conservative powers in the land appreciate and have grown to trust the president, rather than the other way around. Perhaps they always have in their duplicitous way. Someday the world will wake up and realize that Obama and Clinton and the rest of the moderate Democrat sellouts have better served the GOP than any of their own office holders, save Reagan perhaps, in the last 80 years. Everyone is so caught up in the partisan political noise that the MSM blows out that it fails to register that none of the 99%, especially the hungry and homeless, have any political representation in Washington.

  3. willid3 says:

    profits via cost cutting only? how far can that go?
    http://pragcap.com/us-economic-growth-and-corporate-profits

  4. Iamthe50percent says:

    The unemployment rate is down and looks rosy, yet driving home I heard on the radio that one in six males between 24 and 54 do not have a job. Are 17% independently wealthy or living off a woman? It seems more likely that the government fixes the headline numbers.

  5. “GM, the second biggest U.S. auto maker saw Q4 profits decline 13%”

    2nd largest by market cap, you mean? Don’t people usually rank them by units sold (GM #1 in that case, in US sales, #2 worldwide)?

    Just curious if all of you finance guys rank them by market cap.

  6. [...] A look back at the economic week that was.  (Bonddad Blog, (Big Picture) [...]