Evening Reading – December 1, 2010
Euro crisis, FED liquidity (poor Lehman), Goldman turning bullish, Beige Book, U.S. motor vehicle sales…
Archive for December 1st, 2010
U.S. Construction Spending Rose 0.7% In October
U.S. construction spending rose 0.7% October vs. -0.4% consensus and revised (down -0.2%) 0.7% rise in September. On year level we are at -9.3%.
Revisions are so big that one can’t rely on this data. This is useless.
November ISM Manufacturing Index At 56.6
ISM Manufacturing Index was reported at 56.9 vs. prior reading of 56.9 and consensus of 56.5.
Kind of disappointment having in mind (mostly) healthy bounces in regional manufacturing surveys.
Peripheral Europe Bond Spreads Down On Hope Of Increased ECB Bond Purchases
Looks like meltdown is averted; ECB will probably announce further bond purchases on it’s tomorrows Governing Council meeting.
Portugal managed to sell €500 of 12-month bills at bid-to-cover ratio of 2.5 times despite S&P negative credit watch issued yesterday.
Waiting for another ride in a few months…
Morning Reading – December 1, 2010
China and OECD leading indicators, Portugal on negative credit watch and Euro crisis….
MBA Mortgage Applications Down 16.5%
MBA mortgage applications fell 16.5% on the back of declining refinancing; Prior reading was an increase of 2.1%; On year level MBA Basic Index is down 0.8%…
ADP Employment Rose 93.000 In November
ADP Employment rose 93.000 in November vs. revised (up 12,000) gain of 70,000 in October. Consensus was at +70,000. Nonfarm payrolls on Friday (rule of thumb) could be close to or maybe little short of a 168.000 consensus.
Challenger Job-Cuts For November At 48,711
Challenger’s count of layoff announcements was reported at 48,711 in November vs. 37,986 in October.
For the time being I expect positive employment report on Friday. Concerning Challenger Job-Cuts: a slightly negative surprise.
China Manufacturing PMI’s Rose In November
Official China PMI rose from 54.7 to 55.3; The HSBC/Markit PMI rose from 54.8 to 55.3. Reading above 50 means expansion.
Large gap between PMI’s and industrial production growth.