Chicago PMI

Tyler Durden's picture

Key Events In The Coming Very Busy Week





The coming week will be busy in terms of data releases in the US; highlights include an improvement in consumer confidence, anemic 1Q GDP growth, and solid non-farm payrolls (consensus expects 215K). Wednesday brings advanced 1Q GDP - consensus expected a pathetic 1.1% qoq, on the back of what Goldman scapegoats as "weather distortions and an inventory investment drag", personal consumption (consensus 1.9%), and FOMC (the meeting is not associated with economic projections or a press conference). Thursday brings PCE Core (consensus 0.20%). Friday brings non-farm payrolls (consensus of 215K) and unemployment (6.6%). Other indicators for the week include pending home sales, S&P/Case Shiller home price index, Chicago PMI, ADP employment, personal income/spending, and hourly earnings.

 
Tyler Durden's picture

Futures' Pharma M&A Euphoria Fizzling As Ukraine Reality Takes Hold





The early session risk on trade, which materialized after the Pfizer confirmation it was seeking to buy AstraZeneca, and which sent the GBPUSD to its highest level since 2009, and also sent the EURUSD and EURJPY soaring in the process lifting US equity futures, has started to fizzle on the most recent news out of Ukraine, where the pro-Russian mayor of Ukraine's second largest city of Kharkiv was shot in the back in an apparent assassination attempt, which happened hours before the US is set to announce more sanctions against the Kremlin and its closest financial oligarchs.  As a result, futures have pared gaisn modestly, especially since AstraZeneca made it clear with its initial reponse it has no interest in Pfizer's offer in its current format.

 
Tyler Durden's picture

Algos Getting Concerned Low Volume Levitation May Not Work Today





It has been exactly six days in which algos, reversing the most recent drop in the S&P with buying sparked by a casual Nikkei leak that the BOJ may, wink wink, boost its QE (subsequently denied until such time as that rumor has to be used again), have pushed the market higher in the longest buying streak since September, ignoring virtually every adverse macroeconomic news, and certainly ignoring an earnings season that is set to be the worst since 2012. Today, the buying streak may finally end on rumors even the vacuum tubes are scratching their glassy heads if more buying on bad or no news makes any sense now that even the likes of David Einhorn is openly saying the second tech bubble has arrived. Keep an eye on the USDJPY which has had seen some rather acute "trapdoor" action in early trading and is approaching 102 after breaching its 55-DMA technical support of 102.38. If the support is broken here we go again on the downside. Keep an eye on biotechs and GILD in particular - if the early strength reverts into more selling again (after the two best days for the biotech space in 30 months), the most recent euphoria phase is now over.

 
Tyler Durden's picture

Payrolls Preview: If Lavorgna Is Right, Citi Fears Asset Markets Will React Badly





Goldman Sachs forecasts a 200k increase in non-farm payrolls for March - in line with consensus - and believe last month's 175k print supports the ongoing positive trend (in light of the weather effect). Key employment indicators looked mixed-to-better in March, and despite the continued cold temperatures, less extreme weather conditions overall should give an additional boost to job gains this month. Citi suggests the weather could have knocked 172k off payrolls overall from Dec to Jan and are more hopeful, expecting a 240k print. Their biggest fear, a greater than 275k print (which is the high bar that Joe Lavorgna has set) could see asset markets reacting badly (on the basis of quicker Fed tightening).

 

 
Tyler Durden's picture

"Best Month For Stocks" Begins With Modest Overnight Futures Levitation





Among the key overnight events was the February Euro area unemployment report, which was unchanged at 11.9%, lower than the 12% median estimate; in Italy it rose to a record 13% while in Germany the locally defined jobless rate for March stayed at the lowest in at least two decades Euro zone PMI held at 53 in February, unchanged from January and matching median estimate in a Bloomberg survey HSBC/Markit’s China PMI fell to 48 in March, the lowest reading since July, from 48.5 in February; a separate PMI from the government, with a larger sample size, was at 50.3 from 50.2 the previous month NATO foreign ministers meet today to discuss their next steps after Putin began withdrawing forces stationed on Ukraine’s border Gazprom raised prices for Ukraine 44% after a discount deal expired, heaping financial pressure on the government in Kiev as it negotiates international bailouts.

 
Tyler Durden's picture

Chicago PMI Plunges To 7-Month Lows, Misses By Most In A Year





"But it must be the weather", we are sure, will be the cry of a thousand economists whose meterologist forecasts just got torn up. Chicago PMI just missed expectations by the most in a year and tumbled to its lowest since August as it appears knowing what the weather was like in March did nothing for analysts' ability to comprehend the awful reality of the underlying economy. The business barmoter has been falling since October (pre-weather) but this month saw the employment sub-index collapsed to 50 (from 59.3), prices paid dropped, and new orders tumbled to the lowest since August. However, rest assured that all will be well, as the survey reports, "Panellists, though, were optimistic about the future."

 
Tyler Durden's picture

Frontrunning: March 31





  • US, Russia talks fail to end Ukraine deadlock (AP)
  • Russian forces 'gradually withdrawing' from Ukraine border (AFP)
  • Turkish PM Erdogan tells enemies they will pay price after poll (Reuters)
  • And Goldman arrives: Credit markets open to Argentina for first time in years (Reuters)
  • Regulators Twice Failed to Open GM Probes (WSJ)
  • Bad loan writedowns soar at China banks (FT)
  • Investors Breathe Life Into European Banks' Bad Loans (WSJ)
  • Euro zone inflation drops to lowest since 2009 (Reuters)
  • Yellowstone National Park rattled by largest earthquake in 34 years (Reuters)
 
Tyler Durden's picture

"Fade The Early Ramp" Watch - Day 7





After ramping in overnight trading, following the spike in Japanese stocks following another batch of disappointing economic data out of the land of the rising sun and setting Abenomics which sent the USDJPY, and its derivative Nikkei225 surging, US equity futures have pared some of the gains in what now appears a daily phenomenon. Keep in mind, the pattern over the past 6 consecutive days has been to ramp stocks into the US open, followed by a determined fade all the way into the close, led by "growthy" stocks and what appears to be an ongoing unwind of a hedge fund basket by one or more entities. Could the entire market be pushed lower because one fund is unwinding (or liquidiating)? Normally we would say no, but with liquidity as non-existant as it is right now, nothing would surprise us any more.

 
Tyler Durden's picture

Stocks Close At New Record High On Russian Invasion, GDP Decline And Pending Home Sales Miss





With the Ukraine now openly appealing to the world to halt what in its own words is a Russian invasion, it only made sense that after the bigger than expected downward revision to Q4 GDP, and the miss in Pending Home Sales, that the S&P would close at a new all time high

 

 
Tyler Durden's picture

It Is Always Sunny In Chicago: Chicago PMI Slams Expectations, Rises From January





In a stunning turn of events, Chicago, where the bulk of the polar vortex impact was felt in the past month, apparently experienced zero negative economic impact from, you know, the weather, after moments ago the Chicago PMI February print blew away forecasts of a 56.4 print, and after printing at 59.6 in January in fact rose to 59.8, just shy of the highest sellside forecast of 60. Because after beating expectations 5 times in a row why not make it six.

 
Tyler Durden's picture

Frontrunning: February 28





  • Yuan suffers biggest weekly loss as PBOC punishes speculators (Reuters)
  • Euro Gains as Bonds Decline With Stocks on Inflation Data (BBG)
  • Biggest Sovereign Fund Forced to Sell Stocks as Mandate Breached (BBG)
  • Because we don't already have enough fried foods.. (Reuters)
  • Putin: Russia to Consider Aid to Ukraine (AP)
  • Wall Street Hates JPMorgan Fee for $1 Trillion Junk Loans (BBG)
  • Yellen Sticks to Plan Amid Weather Doubts (WSJ)
  • U.S. Retail Chains See First Profit Decline Since Recession (BBG)
 
Tyler Durden's picture

Futures Tread Record Territory Water Following Overnight China, Ukraine Fireworks





In addition to the already noted fireworks out of China, where the Yuan saw the biggest daily plunge since 2008 and the ongoing and very rapid newsflow out of the Ukraine, focus this morning was very much of the latest Eurozone CPI data, which despite matching previous low levels, came in above expectations and in turn resulted in an aggressive unwind of short-EUR bets as market participants were forced to re-asses the likelihood of more easing by the ECB. Still, even though the Euribor curve bear steepened and Bunds came under significant selling pressure, the EONIA forward curve remained inverted, signifying that there is still a degree of apprehension over what is unarguably very low inflation data.

 
Tyler Durden's picture

Chinese Housing Weakness Unable To Keep USDJPY-Driven Futures Lower





Asian equities are trading lower across the board on the back of some negative credit stories from China. Shanghai Securities News noted that ICBC and some other banks have curbed loans to developers in sectors such as steel and cement. Slower gains in home property prices in China’s tier 1 cities are also not helping sentiment. Beijing and Shenzhen prices rose 0.4% in January, which looks to be the slowest monthly gain since October 2012 according to Bloomberg. Elsewhere there are reports that a property developer in Hangzhou (Tier 2 city in China) is reducing its unit prices by 19%. Our property analysts noted that given the strong gains seen in Tier-1 and some bigger Tier-2 cities in 2013, a slowdown or negative trends in price growth should not be a surprise. Nevertheless, it has been a very weak day for Chinese and HK markets with the Shanghai Composite and the Hang Seng indices down -2.0% and -1.2% lower as we type. Across the region, bourses in Japan and Korea are down -1.0% and -0.6%, respectively.

 
Syndicate content
Do NOT follow this link or you will be banned from the site!