Succinct Summations week ending June 14, 2013.
Positives:
1. Retail sales rose 0.6% in May v expectations of +0.4% (helped by autos +1.8%).
2. Households healing as Debt/Disposable Income declined to the lowest levels since 2003 (112%).
3. S&P 500 logged 2nd best day of the year Thursday thanks to late push from FOMC scribe Hilsenrath.
4. U.S. weekly jobless claims declined for 2nd straight week, coming in at 334k v expectations of 346k.
5. Fed. Gov. Bullard said U.S. inflation surprised to the downside (duh, re: Gold)
6. NFIB small business optimism hits 1-year high, rising to 94.4 in May
7. U.S. MBA’s mortgage application index rose 5% last week.
8. Construction output in the U.K. improved to -1.1% y/o/y from -7.2% in March.
9. S&P revised U.S. sovereign credit outlook to stable from negative (who really cares what S&P says?)
Negatives:
1. Volatility has returned; 10 of last 11 sessions have seen 100+ point moves in the Dow
2. Markets driven by speculation of Fed’s next move; whipsaw action is here
3. The Dow Jones saw its’ first 3-day losing streak of the year.
4. Industrial production in May came in flat v expectations of a 0.2% rise.
5. U of Michigan Consumer confidence fell to 82.7 in June from 84.5 in May.
6. Capacity utilization fell to 77.6% v expectations of 77.8%
7. Furniture sales fell for 5th consecutive month, surprising given strength in housing market.
8. PPI increased 0.5% m/o/m in May (inflation remains modest, increasing at +1.7% y/o/y).
9. Household debt/disposable income ratio is 112%!
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