May PPI Comes In At 0.2%, Higher Than Expected 0.1%, Eleventh Consecutive Increase; Retail Sales Slightly Better Than Expected

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Tue, 06/14/2011 - 08:48 | 1367316 ZeroPower
ZeroPower's picture

Futures up on China and US PPI news... PMs aren't following though.

Tue, 06/14/2011 - 08:51 | 1367319 Re-Discovery
Re-Discovery's picture

Inflation is transitory, didn't you here?  Gas and food will go down . . . at some point . . . in the future . . .

So we ignore that stuff and absolutely focus on the slight beat of expectation on people spending money they don't have.  I mean don't you get it?

 

Tue, 06/14/2011 - 09:21 | 1367392 augie
augie's picture

nothing like a little rampant consumerism to obfuscate any perceived relevance on the public. Looks like we have a ways to go before the storm clouds roll in. 

Tue, 06/14/2011 - 09:37 | 1367426 johngaltfla
johngaltfla's picture

Inflation (official) at 0.5%, retail sales (ex Food/Autos) up 0.3%.

Do the transitory math.

Tue, 06/14/2011 - 08:53 | 1367324 SheepDog-One
SheepDog-One's picture

Well gee I thought the plan was Ben would now take down the markets in spectacular fashion and make everyone beg for QE3...seems instead he's going to repump DOW 12,000. Yea like anyone has a clue what the maniacal monetizers will do next.

Tue, 06/14/2011 - 08:57 | 1367343 Cdad
Cdad's picture

And even the once venerable Art Cashin has now tossed his credibility, earned over decades of free market trading, on the bonfire of the Ponzi market and QE3 desires.

So let's all pretend that Best Buy's earnings report is worth 7% and forget that entire continents are broke, contracting, and dying at the hands of central banks.

Brilliant!

Tue, 06/14/2011 - 09:05 | 1367357 SheepDog-One
SheepDog-One's picture

Ignore huge earnings misses in a row but glom onto electronic retailer Best Buy's eek out of an expectations meet....and the crowd goes WILD in the face of world riots, governments firing on their own unarmed protestors, Europe splitting apart at the seams, HOORAY lets pump STAWKS!

Tue, 06/14/2011 - 09:07 | 1367366 Cdad
Cdad's picture

And never mind about credibility...it's overrated.  Just gap the market on utter nonsense and expect folk to follow...because it has worked so well the last two years causing such a nice economic recovery.

As for that, who cares if the dollar implodes.  Announce QE3 this afternoon, and give the nation exactly what it deserves.

When every last Wall Street banker, trader, and analysts has arrived at the point when they will sell their cred for a one day bounce...be fearful.  The host is dead.

Tue, 06/14/2011 - 09:12 | 1367372 SheepDog-One
SheepDog-One's picture

Poor old Art, apparently reduced to another Blowhorn free crack addict jonesing for another hit. Throw all your credibility out the window boyz, its time to cling to DOW 12,000 like grim death.

Personally, I dont think Ben has a clear idea what he'll do next he's damned if he does, damned if he doesnt. I think he's scared shitless to let stocks go down, great danger of nothing bringing them back as 401K Brigades dump and leave the casino.

 

Tue, 06/14/2011 - 09:24 | 1367386 Cdad
Cdad's picture

Dog,

Are you suggesting that Mutual Fund redemption hour [aka 3-4 pm est] is the prevailing threat to the gap up, Ponzified, Roach Motel [SPY] driven, fraud riddled, bonus inducing, economy destroying stawk market?

I would suggest to you that, when even Art Cashin knows it, you are correct.  But what do I know?

See you at the mall, Dog!

Tue, 06/14/2011 - 09:29 | 1367415 SheepDog-One
SheepDog-One's picture

Must.......go to......mall.....must consume.....retail Gap t-shirts......must buy.....

Tue, 06/14/2011 - 09:51 | 1367455 Cdad
Cdad's picture

THE ULTIMATE TELL DOG...liquidity crisis forming up on the company most responsible for serving up edible streaming movies to hungry Americans whose federal unemployment insurance has expired.

Big time selling, more broadly, into the magical, fizzy lifting drinking Roach Motel.  Commence with the Great Intraday Betrayal.  And let us all stand back in gaze in horror as Art Cashin joins the chorus of those who think that money printing will cure the plague upon us.

Credibility for sale...credibility for sale...hard fought for...decades of postive comps...at a "historically cheap valuation."

Tue, 06/14/2011 - 09:46 | 1367453 John Law Lives
John Law Lives's picture

Trading institutions are generating revenue if the market goes up or down. That is part of the game.  If the interest earned on CDs and savings accounts and money markets and Treasuries and municipal bonds were more attractive than the perceived returns offered by stocks... and therefore no retail investors ever bought and sold stocks, there would be as much of a need for Wall Street.  How can oligarchs steal wealth from ordinary Americans if there is no Wall Street and TBTB banks and HFT algos that don't care about funamentals.  The market does not represent a vehicle for fair and open price discovery of equities.  It is about making as much money as possible for insiders and power brokers. They don't care if it doesn't make sense to us.

 

http://www.youtube.com/watch?v=e9mWAxHpeew&feature=related

Tue, 06/14/2011 - 09:51 | 1367461 Cdad
Cdad's picture

They don't care if it doesn't make sense to us.

That is my point.  If it makes no sense to "investors," then no capital will form to support it.  If the market continues to be only as viable as the day's counter trend rally, as its credibility is tossed on the fire for just one more gap up, that is the extent to which said market's fate is sealed.  Bring on the crocodile algo!

We.  Are.  Greece.

Tue, 06/14/2011 - 10:30 | 1367544 John Law Lives
John Law Lives's picture

We have a Fed Chairsatan who wants to spur inflation whilst punishing savers who would prefer to invest in fixed income.  We sure are lucky to have a Fed Chairsatan like him... (sarcasm)...

Tue, 06/14/2011 - 09:06 | 1367364 yipcarl
yipcarl's picture

Cdad....My sentiments EXACTLY...

Tue, 06/14/2011 - 09:16 | 1367381 Cdad
Cdad's picture

Cue up MORE STORIES ABOUT SHOPPING!  Let's get BlowHorn [CNBC] anchors out into the malls to do stories on what color Gap t-shirts are hot this quarter.  Let's focus on the utterly irrelevant as Greece walks up to the gallows and prepares to either be sold into slavery or revolt and default on the kleptocracy.

Let's rally banks...on the hopes that accounting is finally made illegal.  Bullish!

Is it bonus time yet?

Tue, 06/14/2011 - 09:25 | 1367394 SheepDog-One
SheepDog-One's picture

You know whats really glaring thru Cdad, is looking at everything over the last 6 months all we've had is everything sloshing around in a wash tub....nothing much is really higher, or lower, bunch of much ado about nothing. Equities about the same, commodities about the same currencies about the same...but to hear it from the Blowhorn theres great activity going on. Nothing but crap really.

Tue, 06/14/2011 - 09:29 | 1367404 Cdad
Cdad's picture

...and the market moves from oversold to overbought...in one premarket session.  Nice.

The BlowHorn will now demonstrate to the world that it is the Kingdom of Irrelevance.  Again, more credibility tossed on the funeral pyre of a dying nation.  Or maybe there is a credibility ETF that I don't know about...and it's all good.

 

Tue, 06/14/2011 - 09:39 | 1367435 HelluvaEngineer
HelluvaEngineer's picture

I closed out half my VXX position yesterday.  I'll be adding it back on (plus a bit more) today around 2:45PM.  Good luck.

Tue, 06/14/2011 - 09:46 | 1367442 HelluvaEngineer
HelluvaEngineer's picture

.

Tue, 06/14/2011 - 10:35 | 1367444 John Law Lives
John Law Lives's picture

Trading institutions are generating revenue if the market goes up or down.  That is part of the game.  If the interest earned on CDs and savings accounts and money markets and Treasuries and municipal bonds were more attractive than the perceived returns offered by stocks... and therefore no retail investors ever bought and sold stocks, there would not be as much of a need for Wall Street.  How can oligarchs steal wealth from ordinary Americans if there is no Wall Street and TBTB banks and HFT algos that don't care about funamentals.  The market does not represent a vehicle for fair and open price discovery of equities.  It is about making as much money as possible for insiders and power brokers.  They don't care if it doesn't make sense to us.

http://www.youtube.com/watch?v=e9mWAxHpeew&feature=related

 

Tue, 06/14/2011 - 10:38 | 1367567 kito
kito's picture

youre finally learning

Tue, 06/14/2011 - 08:49 | 1367325 buzzsaw99
buzzsaw99's picture

In honor of the PPI my discretionary purchases will be much less this month.

Tue, 06/14/2011 - 08:53 | 1367332 cossack55
cossack55's picture

Is long-shelflife food and ammo discretionary?

Tue, 06/14/2011 - 09:05 | 1367351 buzzsaw99
buzzsaw99's picture

actually ammo is discretionary if one isn't trigger-happy.

Tue, 06/14/2011 - 09:48 | 1367448 snowball777
snowball777's picture

Why choose? PYOL: pack your own loads.

Tue, 06/14/2011 - 09:51 | 1367454 buzzsaw99
buzzsaw99's picture

been there, done that. reloading 200 rounds a week gets old after awhile.

Tue, 06/14/2011 - 10:32 | 1367539 snowball777
snowball777's picture

"When the world is running down..."

http://www.youtube.com/watch?v=pOVljWm7P-8

Gotta do something for entertainment in the bunker.

Tue, 06/14/2011 - 08:53 | 1367328 Boilermaker
Boilermaker's picture

Well, you knew they would find a way to jack the futures.  Bravo chap...bravo <golf clap>

Tue, 06/14/2011 - 08:56 | 1367329 buzzsaw99
buzzsaw99's picture

Berkowitz and Miller bet client's money on financials and lose big. lmao

Death from a-BOVE! lololololol

Tue, 06/14/2011 - 08:56 | 1367330 Ray1968
Ray1968's picture

I guess signs of inflation mean its time to slam the metals.

Tue, 06/14/2011 - 09:46 | 1367452 snowball777
snowball777's picture

Honey, I shrunk the APMEx cart total.

Tue, 06/14/2011 - 10:20 | 1367509 tarsubil
tarsubil's picture

I try to keep the cart totals the same regardless. What changes is the size of the step towards my total oz goals for Au and Ag.

Tue, 06/14/2011 - 08:57 | 1367333 Hedgetard55
Hedgetard55's picture

The market is in that mode where they will grab and hug any piece of slightly "good" news and juice prices for a day or two - like a drowning man grabbing his rescuer and pulling him under with him.

Tue, 06/14/2011 - 08:57 | 1367346 SmoothCoolSmoke
SmoothCoolSmoke's picture

Agree.  I cannot believe the "Big Boys" will do anything but sell the open today.... while they tell Mom and Pop to buy! 

Crooks.

Tue, 06/14/2011 - 08:56 | 1367342 Re-Discovery
Re-Discovery's picture

I think what everybody has missed is 'how' Fed can roll out QE3.  I like W Ross theory that blaming Congress for debt ceiling/deficit/austerity mess is the catalyst.  It seems to round the circle. 

I dont think Bernanke WANTS equities to get crushed.  But he needs an excuse to print so that was a logical one on which to focus.  he will never admit QE is not working.

 

Tue, 06/14/2011 - 09:04 | 1367348 css1971
css1971's picture

QE1 & 2 did work. The US and EU banks will live and will be buying up everything they can lay their hands on at 20% of current market prices.

Tue, 06/14/2011 - 09:04 | 1367361 buzzsaw99
buzzsaw99's picture

QE worked great. It handed the banks risk free profits.

Tue, 06/14/2011 - 09:05 | 1367353 docj
docj's picture

Sorry, I simply cannot believe anything - good or bad - these crapweasal criminals have to say about this economy (or much of anything else, for that matter) anymore.

Tue, 06/14/2011 - 09:02 | 1367354 lizzy36
lizzy36's picture

After 6 down weeks, and almost 8 down days in the last 9, we were due for a pop.

Here it is, enjoy.

Two years after the recession ended we are going to celebrate a "less bad" than expected report. Notwithstanding, that retail sales were lower for the first time in 11 months.

One assumes there is a reason why inflation adjusted retail sales are not reported. Can anyone elaborate on that reason?

Tue, 06/14/2011 - 09:09 | 1367368 Greeny
Greeny's picture

"Notwithstanding, that retail sales were lower for the first time in 11 months."

It's a May, not Christmas, I surprised that they

come out that "high" with 4$/gallon gas.

Tue, 06/14/2011 - 09:11 | 1367371 FOC 1183
FOC 1183's picture

my understanding is that it's a function of timing (i.e., CPI is not typically not available when retail sales are originally released).  You can get Real Retail Sales (e.g., St. Louis Fred) on a delayed basis.

Tue, 06/14/2011 - 09:11 | 1367370 PulauHantu29
PulauHantu29's picture

It's good to see the breakdown. What I see are some sectors still plunging...oops, I mean correcting (like overvalued house prices) and other sectors increasing (like ALL foods) or package sizes cut by a 3rd (like frozen berries).

RE runs in 10-12 year cycles so I don't expect house prices to stop "correcting" for at least 8 years. Even Wall Street analysts admit house prices will not stop falling until "the employment situation" picks up in the USA which they say won't happen for 8-9 years. So that ties in with the 10-12 year historic cycling of RE also.

GL!

Tue, 06/14/2011 - 09:21 | 1367384 Greeny
Greeny's picture

"It's good to see the breakdown"

What kind of masochism is that? The most breakdown sector

is PM stocks, check them out, if you will, they've been

cut in half. So, basically you are happy, cause your

and mine

Silver going down the tubes as well, even faster than

general Market. Nice to watch that agony daily, right?

Enjoy counting your loses.

Tue, 06/14/2011 - 09:25 | 1367402 SheepDog-One
SheepDog-One's picture

Whoever said to buy paper PM's? BTW those PM's 'down the tubes' are still WAY over historic highs...hell I was buying $13 silver 2 years ago and getting laughed at here when I said it would go over $20.

Tue, 06/14/2011 - 09:28 | 1367413 Forward History
Forward History's picture

Dollar-cost averaging. Another reason to enjoy being a long.

Tue, 06/14/2011 - 09:17 | 1367374 monopoly
monopoly's picture

Gold, silver still in correction mode. So far, usual summer doldrums.

Tue, 06/14/2011 - 09:17 | 1367376 oogs66
oogs66's picture

This morning rally looks like it should be faded.  Nothing has improved that much.  The 8:30 numbers had some 'beats' but with revisions it wasn't particularly strong.

The credit markets are experiencing a typical short squeeze morning.  CDX Indices are all tighter and feel strong.  Single names are tighter but a little less strong, and cash is more hopeful of a rally than experiencing an actual rally.

So far in credit it is basically a fast money/hedging squeeze.  Need bonds to be well bid for a sustainable rally.  I don't see that, and expect we will see stocks struggle to hold onto the gains in futures - fast money/hedging equivalent of the CDX indices.

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