Succinct Summation of Weeks Events (8/23/13)

Succinct Summations week ending August 23, 2013.

Positives:

1. The 10-year yield closed lower on the week, giving the markets a reprieve from the recent rate shock.
2. China HSBC PMI for August came in at 50.1, a 4-month high.
3. Existing home sales rose to 5.39M v expectations of 5.15M (3-year high).
4. U.S. jobless claims four-week avg fell to lowest levels since November 2007.
5. Fed speaks, some dovish, others hawkish. Markets digest the news positively and large caps close at the highs of the week.
6. Kansas City Fed manufacturing index rose to 8 v expectations of 6.

Negatives:

1. Wells Fargo, the biggest U.S. home lender will cut 2,300 jobs in mortgage production.
2. New home sales fall to 394k v expectations of 487k, not good.
3. U.S. initial jobless claims rose 13k to 336k v expectations of 330k.
4. The Nasdaq was down for 3+ hours, mom and pop rush to get back in the markets.
5. AAII bears rose to 42.9% from 28.2%, most bears since April (contrarian buy indicator).
6. U.S. equity funds see largest weekly outflows in more than 5-years (contrarian buy indicator)
7. MBA mortgage apps fell 4.6%
8. Emerging market currencies had a tough week and some markets got killed. On the week Indonesia -8.7%, Thailand -7.5% and the Philippines -5.6%.
9. The Chicago fed came in at -0.15 v expectations of -0.10
10. The home construction index gave back all of its YTD gains, off 20% in 14 weeks.

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