Thursday, July 14, 2011

Market comments for July 14th

Initial Jobless Claims data was released this morning and came in at 405K. This is a reduction of 22,000 from the previous week, but still over 400K. Expectations were for only 370K this week. The data from the previous week, however, was revised upwards from 418K to 427K Initial Jobless Claims, so again, not in the right direction for a recovery.

The PPI came in at -0.4%, while expectations were for -0.2%. This shows deflationary, not inflationary pressures are building, as the Fed is worried most about.

Retail sales for June came in at +0.1%, which is not much, but expectations were for a -0.3% number. Retail Sales Ex-Auto came in unchanged from the prior month. Thus, we have stagnation in Retail Sales.

The Dow Futures are up about 26 points at this hour, but I have a difficult time being convinced the market will rise today, given the way the issue of raising the debt ceiling has taken over most news commentary as a gloomy outlook. But in a market manipulated by the Fed, anything is possible. And with Moody's threatening a downgrade of the U.S., this is indeed a major game of chicken being played out nationally.

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