U.S. housing starts in June collapsed. The 9.3% decline contrasts with expectations for a 1.9% increase, according to a Bloomberg survey. Adding insult to injury the May series was revised down to show a decline of 7.3% rather than 6.5% as initially reported. And worse, the building permits fell 4.2%. They were expected to have risen by 3.0%.
Once an economic recovery picks up steam and inflationary pressures begin to rise, the market's reaction function "switches polarity" and incoming economic data is now interpreted as a negative market signal because it means there is a greater chance the Fed will be raising interest rates in the near future. This is where we find ourselves now.
Earnings remain front and center in today’s session, with the finance-heavy results thus far largely in the “positive and reassuring” category. Continuation of this favorable trend over the next couple of weeks will likely do more for this market than any other factor.
A generally dovish performance by Yellen yesterday consistent with current expectations. But notice her acknowledgement of her critics, and watch for the "considerable period" debate to heat up as October approaches.
In an age when governments of every political leaning and ideological stripe distort economic data to promote their parties’ interests, it is hardly surprising that the nation’s inflation rate is reported in a manner that best suits their political needs.
The minutes of the most recent FOMC meeting, released last week, have gotten much attention. This is in part because of details the Committee provided regarding its discussions about framing the processes and procedures for returning interest rates to a level consistent with its statutory mandate of stable inflation and maximum employment.
In a recent interview with Financial Sense Newshour, the widely followed gold analyst—once named 2nd most accurate by Bloomberg—provides an excellent view into the mental hopes and fears of most precious metals investors right now.
While I was in the Pacific Northwest and Canada most of last week, I did have the privilege of listening to J.P. Morgan’s (JPM/$55.80/Strong Buy) Chief Market Strategist last Monday. Dr. David Kelly has long been known for his keen insights on the equity markets...
We need to congratulate Germany on its World Cup win. It was a victory for organisation and science, but unfortunately the Germany economy is slowing fast — and too fast for comfort when we look at Eurozone GDP.
This Great Graphic was tweeted by Cigolo and retweeted by Pauly@spz_trader, which is how we saw it. The data is from Thomson Reuters Datastream. It shows US and euro area industrial production since 2002.