Succinct Summation of week ending February 14, 2014
Positives:
1. After a 6% pullback, the S&P 500 has rallied 7 days in a row and is less than 1% away from new all-time highs.
2. QQQ closed at a new 14-year high
3. Euro-zone GDP grew 0.3% in Q4 v 0.2% expected. This is the 3rd consecutive quarter of expansion.
4. Total earnings for the S&P 500 are on track to reach an all-time quarterly record.
5. The Market had its best week of the year
6. NFIB small business hiring plans rose to 12%, highest reading since September 2007.
7. Consumer confidence came in unchanged, but beating expectations.
8. NFIB index of small-business optimism comes in at 94.1, a hair over expectations.
9. Greek 10-year yield at lowest levels since 2010.
10. Italian GDP grew 0.1% in Q4, the first expansion since 2011.
Negatives:
1. U.S. January manufacturing output fell 0.8%, biggest drop since 2009
2. Retail sales fell 0.4%, v flat expectations. December’s #’s revised down to -0.1%, from 0.2%.
3. U.S. industrial production fell 0.3% in January, economists were expecting a 0.3% rise.
4. Initial claims jump to 339k vs 330k expected.
5. Mortgage apps still not responding to rates down from recent highs. Purchase apps fell 5% w/o/w after dropping 3.8% last week — nearing lowest levels since December 2012.
6. December JOLTS data = 3.99mm openings, down from 4.03mm in November.
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