This page has been archived and commenting is disabled.
First Wholesale Sales Decline Since March 2009 Sufficient To Send Stocks Higher
This it the kind of bad news that is now sufficient and necessary to send stocks higher: wholesale sales have plunged from a revised 0.9% to -0.3%, missing the consensus 0.5% by about a mile, and the first decline since March 2009. Yet wholesale inventories were in line, coming in at 0.5%, compared to expectations of 0.4%, even as the prior month was revised to 0.2% from 0.4%, thus washing the two month benefit as well. In sales, the biggest hit was felt by lumber which went from +8.6% to -8.7%, automotive from 1.8% to 0.6%, computers dropped from 3.5% to 1.8%, electrical goods from 3.1% to 0.6%, and hardware from 3.1% to 1.0% And as we see huge mutual fund outflows, stocks rip on this latest batch of bad news. After all QE 2.0 is now getting priced in and the cost of cash will soon be negative all over again.
»
- 4335 reads
- Printer-friendly version
- Send to friend
- advertisements -
I thought you survivalists were buying in bulk?
it's all gooder!!!!
if wholesalers aren't buying inventory it must be because they are buying ipads...right???
so it's all good...yepper
"After all QE 2.0 is now getting priced in and the cost of cash will soon be negative all over again."
I do think that's an element of what's happening. There simply isn't a way out of this but to print money. Sadly, inflation will cure a lot of problems. It's just too bad it sets a really bad precedent to savers.
Printing money and making it circulate (velocity) are two very different things.
Any relation to Rok-n-Dan from RR?
"It's just too bad it sets a really bad precedent to savers."
The savers have been taking it up the rear end for decades. Nothing new to see here.
BTW the Russian spy Chapman was deported last night to Russia in a spy swap. Looks like it's time to retire the avatar.
http://roadrunner.com/news/topic/article/rr/9000/15561253/Spy_swap_unfolds_with_guilty_pleas_by_10_in_NYC
Throwing my two cents of bat shit crazy conspiracy out there.
Notice the timestamp of when that spy swap article was published? Did The Almighties That Be tell LeBron to schedule his impossibly difficult decision, that no one should really care about, around the same time US and Russia would exchange captured spies?
Gah, my Apple product's battery was dead. Recharged and I'm good to go now.
appearing soon in a Russian porno near you!
She'll be in Playboy within the year. Bank on it.
Yeah, but does she insist on being paid in Dollars, Roubles, Euros or Gold?
CD,
Very odd / funny the Rooskie spy's were very keen on details of our Gold business, and buying, trading habits.And passing this along to the Master.............
I look for Russia to start a Gold backed currency, Gold for Oil, etc, to bring the US to it's knees..............or some funny business to dump Bonds/Treasuries.............
Any thoughts on this aspect of their spy ring?.
When spies are exposed, what is said by both sides is more important that what is not.
I find it interesting that the US would say that these "spies" made few "important" connections and thus did little to no harm. And yet there was a rapid "spy" exchange. If these spies were not important and never did any harm, why is Russia and the US immediately agreeing to an exchange of spies?
Also, I haven't done any research yet but who they exchange for is also very important. So I will be looking closer at the 4 spies Russia released for these 10.
I think these were economic spies and not traditional "national security" spies. I understand everything would and could be considered national security. What I'm saying is that these spies weren't interested in troop levels or missile tech. They wanted to know about various things economic. The modern war will be played out in the HFT computers, not on the battlefield.
The market is moving up on anticipation of the FUTURE and that is QE2.
So the worse the news, the better the odds that our masters (politicians and Fed) employ QE2 to save us from ourselves.
To paraphrase an observation by Paul Bluestein, deflation punishes the imprudent, while inflation punishes prudent and imprudent alike.
guys, relax. markets make news, not data
we are in a corrective wave ii of 3 of a primary degree third. the market wants to close the 1075.5 bear gap. so what; let it.
FXA up. Stocks up. Computers don't care about your inventory report. Love - HAL.
Maybe QE 3 is not priced in yet. They should get Apple to come up with better names, iQE, QE Air, QE mini.
Wholesale? We don't need no stinking wholesale. Rally on bitchez
These guys are way ahead on the QE2 call. It will definately happen but it won't happen until we at least get back down in the 800's maybe even the 700's. It's the only bullet they have left.
Happy one year Zero Hedge anniversary HEHEHE.
And I suspect you may be right. Considering that public sentiment for more "spending" has turned against the Fed and government, they're going to need to make people "want" QE 2.0.
I suspect revisiting the lows would be just the right prescription.
Quel Aid
get it while its out
better than iced Real-iTea
You likely won't see QE2 until corps have to start dipping into cash reserves for daily ops. Then Benny will QE2 again so they can play another round of secondary offerings into an artificially inflated market.
We need an over under on Israel attacking this weekend. New moon, US fleet in position, gold/silver beat down last week, Swiss Franc run up, Lebron announcement, its all coming together.
I got everything except Lebron. Taking less money because he wants to win seems quite sane to me.
I hope he won't be one of the 40+ million getting food stamps with the cut in salary. Maybe O can try to get some sleep now since the decision is made.
I thought the comments by the Teleprompter on ME peace during his first term and some comments by Net. to suggest there will not be action this weekend.
Think of QE-2 as an Elliott 3rd wave. The next print announcment is going to explode the market higher. QE-1 caught most off guard and only the most savey traders flipped to the right side of that trade. QE-2 will bring everyone on the same side and cause the HFT'rs machines to smoke up as we blast off. Don't out smart yourselves and get your fingers chopped off when it comes.
scatter,
BINGO!...............
"Think of QE-2 as an Elliott 3rd wave. The next print announcment is going to explode the market".
What's getting damned scary is the APPROVAL rating for ObummerCare is going UP.
Peop/Sheeple are sucking it up..........they are CLUELESS what's in it.........like the over $600 /1099R Forms for all purchases.......
This will esp affect PM's.............
Bet they find a VAT tax in there before it's done.
I hadn't considered a vat tax on pm purchases.. just tax the shit out of it until peeps arn't interested in buying it any more hmm interesting.
UFB.
is this scenario realistic?
liquidity tightens sending treasury yields higher, which causes the stocks to go up as well. i am only judging by google finance but every time stocks are red, so are the treasury yields and vice versa.
Have you seen the Emperor's zen garden?
He dragged his naked balls around for days to achieve perfectly uniform furrows.
Quite an achievement considering the left one hangs considerably lower than the right.
http://z.about.com/d/geology/1/0/E/C/1/bigzengarden.jpg
My only concern with rising stock prices accompanying dramatically falling production -is that the appearance of regulatory capture will force a military coup. ..literally walking into manhattan and shutting down the NYSE. I kid you not! this has to xplode somehow and with Niedermayer's name on the frontpage the day the system falls...
And QE2.0 isn't the only option...thinking could be tried, for instance.
You do realize that when enough of this data is captured, by anyone not understanding the invisible hand of the market is doing anything except for jerking-off, they'll write 5th grade reading level text books for college bound students out of it?
They will be told these are acceptable trends.
Sorry but who IS Lebron?
DavidC
A basketball player that no one should really care about.
Another spoiled Sports brat, given a gift from genetics, that is SO overpaid, he makes GS Execs look bad.
This is really all you need to know about LeBron:
http://www.youtube.com/watch?v=9-9TAoPPgKQ
In the words of some dude I overheard at lunch:
"LeBron? Man, LeBron's been doin' some shit I ain't never seen before..."
So it seems companies are buying a lot less lumber. What does that indicate? ;)
WE ARE JAPAN. BIGGER AND FASTER.
SORRY BEN, THIS TIME IT WON'T BE ANY DIFFERENT. WHAT THE HELL GAVE YOU THE IDEA IT WOULD BE???
Except we have the exorbitant privelege of the rest of the world owning our debt - wasn't Krugman using Japan as a rationale for QE-2? If not, I don't care. He's a fucking dumbass either way
Against the grain, I dont see such a slam-dunk euphoria reaction to more Q/E. Everyone said the $1 trillion Euro bailout would be nitromethane fuel, yet it immediately faceplanted while the EU banksters just shorted the hell out of it. The first Q/E ran its course to zero positive effect so unless everyone is re-moroned, 2nd Q/E is seen for what it is, just more inflationary crap in a blown out zero production economy.
Really this is a great post from an expert and thank you very much for sharing this valuable information with us................. windows vps | cheap vps | forex vps | cheap hosting