Succinct Summations week ending 4.25.14

Positives:

1. U.S. Durable goods rise 2.6% v 2% expected, biggest rise since January
2. University of Michigan consumer comes in at 84.1, the highest reading since July.
3. Euro-area PMI rose to 54 in April, up from 53.1 in March and higher than 53 expected
4. Richmond Fed comes in at 7 v 2 expected.
5. China HSBC PMI came in at 48.3, up from 48 in March.
6. Philly fed came in at 16.6, well above the 10 expected.

Negatives:

1. Existing home sales fall to 4.59 million SAAR, the lowest since July 2012
2.  New home sales tumbled 14.5% m/o/m to an annualized pace of 384k units v 450k expected, ugly miss.
3. High flying stocks continue to get crushed, the Nasdaq internet index sold off 4% on Friday.
4. U.S. manufacturing PMI fell to 55.4 from 55.5 in March and below 56 expected.
5. Mortgage applications fell 3.3% last week.
6. Initial jobless claims come in at 329k v 315k expected

 
 

 

Category: Markets

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3 Responses to “Succinct Summations of Week’s Event’s 4.25.14”

  1. chartist says:

    I think the markets are going to discount the end of QE over the next three months. I am set up for a sizable correction down to 1550 SPX….With Ford’s beta of 1.35, I put that stock down to $12.25. I think next quarter will be the kitchen sink quarter for Ford. For me, the wild card are the emerging markets. I am watching the monthly chart on the EEM. That sideways triangle is nearing the apex. A downside break measures to $20. What would a breakdown of the emerging markets mean for our market? I like gold here up to $1500.

  2. MarkKlose says:

    While the housing recovery is undeniably weak, it’s not as bad as the headline numbers suggest. The decline in existing home sales is entirely due to lower distressed sales (foreclosures & short sales) with regular sales flattish to up slightly. The drop in distressed sales is very good news. We wont know for a couple of months how much the new home market was affected by the weather, but it’s worth noting that when you look at the new order data from 6 of the largest home builders, they had about a 1% increase from the same period last year. But location & product mix really matters, as the weakest were down 5.5% to 6.5% while others were up 6% to 8%. Overall housing starts continue to have a higher percentage of multifamily than is customary. Very tight underwriting is a more significant headwind than higher mortgage rates. Again, very weak but the headline numbers are misleading.

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

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