Succinct summation for the week ending June 21, 2013.
1. Fed: “Downside risks to outlook for economy, labor market have diminished.”
2. NAHB housing index hit 52 in June, highest level since 2006
3. Food prices fell 0.1%, largest decline since 09 (good for consumers).
4. The irrational fear money hiding in Gold gets shmeissed, hitting its lowest levels since 2010.
5. Philly fed manufacturing index came in at 12.5, its highest reading since April 2011.
6. U.S. May CPI continues to stabilize, nudging up +0.1% v expectations of +0.2%, core CPI +0.2%, in line with expectations.
7. Japan May exports rose 10.1% for the year v expectations of +5%.
8. Empire state factory index rose to a three month high.
1. Based on “diminished downside risks to outlook for economy, labor market,” the Fed begins discussing tapering QE.
2. Dow Jones saw its first back-to-back 200 point declines since November 2011 (Thursday down -353).
3. Eat like a bird, shit like a bear: May and June gains wiped out in 48 hours; Thursday saw the biggest drop in the S&P 500 in 9 months.
4. Construction on new U.S. houses rose 6.8% to a seasonally adjusted annual rate of 914k.
5. U.S. jobless claims rose 18k last week to 354k (4 week high).
6. Borrowing costs rise, with 10 year treasury yields at 2.5% — new 52 week highs.
7. Emerging markets lose 15% in 5 weeks.
8. Brazil crashes 20% in 4 weeks.
9. Protests break out in Brazil, riots break out in Turkey.
10. The markets have a hard time digesting the Fed’s message, volatility spikes (enter Hilsenrath).