Succinct Summations week ending September 5th
Positives:
1. ECB lowers rates gives further clarity in its attempts to encourage a greater level of small and medium sized business lending. He also gets another leg lower in the euro via another cut in short rates and by adding covered bonds to its menu of asset purchases.
2. ADP said 204k private sector jobs were created in August.
3. Unemployment rate ticked down in August to a seasonally adjusted 6.1% from 6.2% in July.
4. S&P 500 made a new all-time high; Emerging Market stocks hit their highest levels since August 2011.
5. The Beige book revealed economic activity largely picked up during the summer.
6. ISM manufacturing index came in at 59 v expectations of 56.8, up from 57.1 previously; Markit U.S. Manufacturing PMI rose to 57.9, the highest level since April 2010
7. Japanese wages rose at their fastest pace in over 17 years in July.
8. Mercedes Benz posts best U.S. sales increase ever in August; Chrysler August U.S. sales rose 20% y/o/y, the strongest increase in 12 years.
9. Construction spending rose 1.8% m/o/m vs a 0.9% expected increase.
Negatives:
1. Nonfarm payroll disappoints with 142k new jobs versus 230k consensus.
2. Investors’ intelligence Bears are down to the lowest levels since…1987
3. European Central Bank is far behind the curve in stimulating a recovery
4. Trading volume is terribly low, not saying much for institutional conviction;
5. Prior 2 months of NFP were revised down by 28k.
6. MBA purchase applications fell 2% w/o/w and are down 12% y/o/y.
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