Following one of the biggest drops ever in the Empire Manufacturing Index a few days ago, it is only completely logical that the Philly Fed would follow through with one of the biggest jumps in history. The Philly Fed prints at 22.5 versus expectations of 5, and a previous read of 1. GM, which was about to take out all the bids at 34.60 pre-news, the US Treasury, GETCO, and nervous flippers, all thank the Philly Fed. Then again, a look behind the headlines indicates that the scariest trend: that of margin collapse, is in full force, as the prices paid-received margin is over 40. From the release: "Price increases for inputs remain relatively widespread this month. Thirty eight percent of the firms reported higher prices for inputs this month. The prices paid index, which had increased in the previous month, increased 3 points. On balance, firms continued to report declines in prices for their own manufactured goods: Slightly more firms reported decreases in prices (16 percent) than reported increases (14 percent). The prices received index remained negative for the sixth consecutive month, although it increased 7 points this month."