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5 Of 7 Chicago PMI Components Drop: Prices Paid, Backlogs, Employment And Inventories At 2010 Lows
The Chicago PMI (whose early release to subscribers pushed the market lower as usual), dropped by the biggest amount so far in 2010: at 59.7, it saw its largest decline YTD, at -6.4%. The only item that rescued the PMI was the ongoing surge in inventories as end demand collapses. How much longer can the inventory rebuild continue?
Aside from the inventory "junk food" restocking, all other PMI components tumbled, with the Prices Paid, Order Backlogs and Employment all coming in at 2010 lows, in signs that the fiscal stimulus benefits are all virtually over. Once the inventory inversion begins, look for the overall business barometer to make a sharp correction to the downside as the sugar high is on its last fumes.
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QE2 coming?
Is it QE2 under Bernanke' watch?
Or, is it QE-5346 since the advent of the Federal Reserve in 1913?
Didn't Greenspan implement his own versions of QE during his stewardship of the Fed?
And, rest assured, somehow, someway, the money had to be found (printed), to pay for Lyndon Johnson's Great Society and the Vietnam war.
And, should we count the Great Fiasco of the Hoover/FDR administrations?
I guess ever since Central Banks discovered that the peasants wouldn't riot once their constitutional money could be replaced with fiat, we've been engorging on some form of QE, especially if QE only means turning on the printing press down at the FED.
Somebody on this forum telegraphed this with yesterday's terrible KC manufacturing report that, of course, nobody gave a mention.
Doesn't matter though, market roars on because Consumer Sentiment came in as expected even though it contradicts the more important income/oulays report from this morning. Media keeps showing people around the world lining up for ipads/iphones/iwhatever - so everything must be ok...right?
Harry, have you seen the light and finally become one of us scared Grizzly bears O'Neil was talking about. If so was it like the movie field of dreams where the brother suddenly sees all the players and says you can't sell Ray.
Nah, Harry' just been assimilated, he saw that resistance was futile.
Plus, he probably just got tired of being junked multiple times for putting up a contrarian opinion.
"for putting up a contrarian opinion." More like slinging up mud and hoping it sticks. At least he's getting much better in terms of posting.. no more bragging and more substance.
The May Empire State manufacturing survey was a real beaut as well. From an April value of 31.9 to May's 19.1. Haven't seen a longer term historical chart - maybe this data set bounces around a lot. Maybe subsequent revisions will tone it down. But on the surface, it is uuugly.
Luckily for the 14 people still holding stocks in America, these numbers are worthless and they can still expect DOW 36K within a few months.
I can't see why that would be so impossible.
If they could float the market higher yesterday on nothing but vapors, why not just add Helium to the mix and float that baby up even higher.
Further, evidence for Large Larry's 2nd (more like 249th, but i digress) stimulas plan. Moreover, extended period language to last through infinity (and perhaps beyond).
And back in the surreal land of the robot, equities about to go postive.
I doubt 200B will go very far, if that's the number he's throwing out.
True story:
Earlier this week as the market flirted with meltdowns day after day, I received a panic phone call from my brother-in-law who happens to be CEO of a rather large CRE firm. He was completely freaking out about the market and how all of his big investors want to stay in cash and not invest in CRE - costing him hundreds of millions of dollars.
Best part of the rant was nothing to do with a lousy CRE market but rather he kept blaming the media for scaring people with all this news about Europe. Amazing - he actually blames the media.
I talked him off the ledge and simply said, don't watch television. That seemed to calm him down for some reason.
@HW
Jeez. MyFriendMises also noticed, but really HW, you may be on the verge of the largest reversal since Saul was struck by lightening and renamed Paul. Congratulations for taking the CNBS glasses off. Of course, if this is part of your research then you're still a *******.
if he is a plant like that one guy said then yeah, he has changed his tune so he can assimilate and document the other side, kinda like 'black like me'. Would be a hell of a trolling effort.
Is this bad? Is this bad?
More from the CNBC / Onion Headlines Series
"Goldman Seeks to Avoid Fraud in Settlement" - 5/28/10
This just means the bottom is in (LOL). Just ask our county finance director who today said this about 30% declines in sales tax collections: "We certainly don't expect revenue to come back quickly, but hopefully we've bottomed". Someone should remind her that she said almost the same thing last year when tax receipts were down 20%.
Deflationary spirals eat "hopefully" for breakfast.
should surprise no one....
Don't watch TV. Don't look in the refrigerator.
TD - Not sure I believe the way you present the data. It totally goes against everything Liesman told me on CNBS this morning.
[/sarc]
LMAO
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She don't lie, she don't lie, she don't lie; cocaine.