Ritholtz is out with some charts and analysis showing that the recovery from losses is not symmetrical.
See the charts and analysis here.
Comments »Today’s Heat Map and A/D Lines
Market Update
U.S. markets remain in negative territory. Today is an individual stock story day as some stocks posted good earnings or have merger plays going on. Overall the Euro remains weak and Europe continues to drag on our markets. Most of Europe is flat, but Spain continues to tank. By the end of the week Europe is expected to vot on the 100+ billion Euro bailout of Spain.
Comments »Business Inventories Climb 0.3% in May
“WASHINGTON (Reuters) – Business inventories rose in May as motor vehicle dealers restocked to meet demand, although sales at companies edged lower for the second straight month, the Commerce Department said on Monday.
Inventories increased 0.3 percent to $1.58 trillion, after rising by an downwardly revised 0.3 percent in April.
Economists polled by Reuters had forecast inventories rising 0.2 percent in May.”
Comments »Calling All Bears and Chart Chompers: “The Ultimate Death Cross”
“We will get into the punchline from Albert Edwards’ latest missive shortly, but first we wanted to share his view on analyst sentiment, and how it relates to the US economy:
Comments »Regular readers will know that we have always followed analyst optimism closely (optimism here defined as the percentage of analysts EPS forecast changes that are upgrades). We have shown previously that it is not the level of analyst optimism that is important for the equity market, but the change in optimism (see right-hand chart below). Somewhat surprisingly we have found that the change in analyst optimism tends to be a very good leading indicator of economic activity (it mirrors almost exactly the OECD and Conference Board leading indicators), but it is published on a far more timely basis, and more importantly it is not subject to revision in the way the economic data and leading indicators are.”
NY Fed Manufacturing Growth Picks Up In July
“NEW YORK (Reuters) – A gauge of manufacturing in New York state perked up in July after a sharp drop off the month before, but new orders shrank, the New York Federal Reserve said in a report on Monday.
The New York Fed’s “Empire State” general business conditions index rose to 7.39 from 2.29 in June, topping economists’ expectations for 4.00.
Forward-looking new orders contracted to minus 2.69, the lowest level since September 2011, from 2.18. Employment gauges were mixed, with the index for the number of employees rising to 18.52 from 12.37 and the average employee workweek index falling to zero from 3.09.”
Comments »Retail Sales: Prior 0.2%, Market Expects 0.2%, Actual -0.5%
Excluding auto: Prior -0.4%, Market Expects 0.1%, Actual -0.4%
Comments »FLASH: Europe Goes Negative With Spain Down 1%
Global markets have been flip flopping around the unchanged line throughout their trading session. Europe have just t turned negative with Spain leading the charge.
Comments »Short Sale Orders Rise Above Last Year’s Peak on the NYSE
“Short sales on the New York Stock Exchange have climbed above last September’s peak, a level that preceded a five-month rally and heralded losses for bears.
Shares borrowed and sold reached 5.35 percent of stock available for trading last month, according to data compiled by NYSE Euronext. (NYX) That eclipses 5.28 percent on Sept. 15, when bearish bets peaked last year and the 25 most-shorted companies in the Standard & Poor’s 500 Index (SPX) began a 21 percent advance, data compiled by Bloomberg show.”
Comments »The Hardest Hit BRIC of Inflation Catches a Break
Inflation unexpectedly eased a bit in India. A good sign if it continues as central banks are prepared to do more.
Comments »Global Markets Tread Lightly to the Upside While U.S. Futures are Slightly Negative
Market Update
U.S. equities blasted off this morning to put in over 1% gains in the first hour of trade. Our performance has pushed European markets to double late day gains.
The world is giddy over China GDP data not going into the ‘tirlet’ (sic) and hopes are rising of more global central banks puts.
The Constanza rally is on!
[youtube://http://www.youtube.com/watch?v=DDRPtg0kmJU 450 300] Comments »3D Heatmap and A/D Lines
Old Man Buffet’s Favorite Indicator is Showing a Mixed Bag
Up until last week rail traffic was pretty much in favor of an expanding economy. This week’s data is showing a mixed bag:
Comments »PPI: Prior +0.2%, Market Expects -0.6%, Actual +0.1%…Core +0.2%…Headline +0.7%
European Markets Said to Rally on China Stimulus Speculation
Europe is currently in a relief rally and the rally is attributed to bets that China will provide economic stimulus. Asia markets rallied on the same bet, but pared gains into the close.
Comments »China’s GDP & Manufacturing Grew at the Slowest Pace in Three Years
Stocks in Asia and especially in China circle jerked on slowing growth in China. The whipsaw action is said to be a indicator that stocks have priced in the weakness. Some emerging markets rallied on the news.
Comments »Asia Pares Gains, Europe is Currently in a Relief Rally, and U.S. Futures are Flat
Market Update
The market continues to remain in negative territory for a fifth day. So far this week the S&P is down 3% or more and we have failed to hold some crucial support levels.
Europe is shutting down currently and is a bloody mess.
Resource stocks, banks, and large cap tech lead the way down.
Overall growth concerns remain, the fed is tight lipped, and the ECB has stopped paying interest on bonds.
