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Industrial Production, Capacity Utilization Both Miss: Good Weather Blamed
And the hits just keep on coming.
Following today's misses in PPI and Empire Fed, it was up to the Fed's April report of Industrial Production and Capacity Utilization to provide at least some validity to Tepper's latest CNBC preachings. Alas, that did not come and moments ago we got the latest disappointments as IP dropped -0.5% on expectations of a -0.2% drop, driven by a drop in Manufacturing Production which dropped 0.4%, despite expectations of a +0.1% increase. Utilities sliding -3.7% did not help the headline print but at least it allowed the Fed to, you got it, blame the weather, only this time there is a twist: the Fed actually blamed the weather for not being as bad as it was in March for the slack in Utility production. One really can't make this up. And confirming that the slack in the economy is structural and not cyclical as the Fed would wants us to believe was the Capacity Utilization print which tumbled from 78.3% to 77.8%, the lowest since January, and resulting from a decline in both Manufacturing and Utilities utilization.
From the report:
Industrial production decreased 0.5 percent in April after having increased 0.3 percent in March and 0.9 percent in February. Manufacturing output moved down 0.4 percent in April after a decline of 0.3 percent in March. The index for utilities decreased 3.7 percent in April, as heating demand fell back to a more typical seasonal level after having been elevated in March because of unusually cold weather. The output of mines increased 0.9 percent in April. At 98.7 percent of its 2007 average, total industrial production was 1.9 percent above its year-earlier level. The rate of capacity utilization for total industry decreased 0.5 percentage point to 77.8 percent, a rate 0.1 percentage point above its level of a year earlier but 2.4 percentage points below its long-run (1972--2012) average.
And with that the only question is how long until today's latest batch of horrible economic data sends the "market" to new highs. Or does CNBC need to drag back Tepper so that the billionaire investor can frontrun himself a little more and give his future purchases of stocks a higher cost basis?
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Whether the weather was good or bad, it wasn't exactly right. The Fed's models only work when it is partly sunny with a 45.6% chance of rain.
Float a reason.
No consequences.
"Hey, it worked."
and with 75% moisture and a south eastern wind on weeks with a full moon and a perfect planet alignment... like we had in 2012....
so the next time this will ever happen again is in about.... 6000 years or so...
Meanwhile, to keep the real estate good news 'a coming....they dropped Albuquerque from the index altogether!
http://www.abqjournal.com/main/2013/05/14/biz/abq-dropped-from-improving-markets-index.html
And ABQ should be dropped...there is NO economy here...just living off the gubbermint...
When societies get as far ahead on their food as we have, then people can sit around and conjecture such bullshit.
'One really can't make this up"
Oh yes they did.
They made it up, surprise not.
If the weather is bad, blame the weather
If the weather is good, blame the weather.
There, fixed unemployment, the economy, life, the universe and everything
The answer is 42.
Hitchhikers guide.
I think you also solved the issue about my wife's moodswings :)
Truth is a conspiracy.
FEDs Weather report: Lies followed with a slim chance of truth..,
The weather was so nice some foreign chemical engineering students decided to take a midnight stroll around the reservoir that supplies water to Boston.
http://bostonherald.com/news_opinion/local_coverage/2013/05/state_police_alert_fbi_of_trespassers_at_quabbin_reservoir
Just another "play" by the Federal Bureau of Invention theater company. hujel
Its all good! Canadian Existing Home Sales (Apr) M/M 0.6% (Prev. 2.4%)
Miss who?
With all the problems Obama has right now..he can´t handle a bad economy too...lol
The evil bastard couldn't handle a good economy on his best of days.
+1 Amen
14 more quarters of this!!
In the Meantime David Axlerod is on MSNBC covering for Obama.
It's become a game of expanding lies.
Say a lie long enough and it becomes the truth.
I thought manufacturing was coming back. Just ask the people of Detroit:
http://www.youtube.com/watch?v=Kem2ceHCtGQ
Manufacting of more EBT cards and Obama phones is getting strong.
It's the groundhog's fault.
Not to worry Tyler. Per yesterday small business optimism is up.
USD NFIB Small Business Optimism 92.1 89.8 89.5 The 'hopium indicators' are all that matters now. /s
This suprises me as Obamacare gets closer and closer...it will destroy small business....rates will double or triple....these little guys just can´t raise prices to cover it....or will they??? Inflation will be at 25% in the first quarter of 2014 i think....
Obama care will not be implemented. "He gone"' long before that.
it will be implemented enough that the irs, the collection arm of the federal reserve, will take ur money out of the bank, and file liens on our homes. the robbing wont stop untill they have it all...and good luck with your legal fees proving your innocence...
Obunga care is doomed. They aren't getting any medical info. from me.
No mention of the the awesome TIC flows? Net long-term at -$13.5bn on est. +$35bn. No worries though, Bloomberg says "Net selling of long-term equities, notes and bonds" owed to "a stronger economic outlook [that] emboldened investors to take other risks"... after selling equities, notes and bonds, it went undefined where those "other risks" might be.
Wait--can Bloomberg see if I'm on ZH?
I have been around since the 60's, and I swear we had weather before 2009.
I just did not realize what an economic driver it could be.
More weather please.
Then you remember the Global Cooling fears of the early 70's.
I school in the late 70's, I remember writing a report on acid rain and another on global cooling. 30 years later, the trees in the adirondacks are still there and this world has gotten so hot I needed a jacket nearly every day this month. In Baltimore. In May. It is a shame that all of those polar bears disappeared as well. The upside to all of this is that I look forward to those polar ice caps melting any day now so my property will become ocean front property just like congressman sarbones warns us about every chance he gets.
was it the paint flying off of ford products in those days, broncos and 150's, not sure about car models, that created acid rain or was it the other way?
Gore is "green," $200million green that is. hujel
The solar flares are at fault.
http://www.space.com/21107-strongest-solar-flare-2013.html
Also North Korea's threat of nuclear war kept shoppers away from malls.
Decline in domestic steel producers feeding the once strong pressure cooker supply chain. This backs up into utilities. C'mon guys, get with the program.
I prefer SpaceWeather generally more accurate / faster updates and no bullshit. If we get a triple X X X with CMEs facing us, Youth will discover the joys of the world without internet, and the cities will find out credit cards and EBT doesn't work.
It won't be Armageddon, but it'll sure be awkward until they get it back online (Note: this is not a predictive stance, and I'm sure Alex Jones will be making some bucks out of it, it's merely an observation. Don't lose your shit over it, or start the fear cycle, shikata ga nai).
The Industrial Production chart looks stagnant. It's time to use some of that QE money to build new things, invest in jobs, CAPEX, etc. Oh, wait that is the plan but we'll see that money tricle down the banksters and other heroic job creators pants in about 10 years.
No they are buying back stock and increasing dividends...all good for management who have many stock options....cutting expenses is how they make a profit now...not by building a new product
The weather wasn't as bad because too many mammals farted thereby creating an excess of CO2, thereby warming the planet.
In the end, it just doesn't matter!! It just doesn't matter!!
http://www.youtube.com/watch?v=XM4jJc8w4H0
I know where we could use that CO2
http://www.bloomberg.com/news/2013-04-02/republican-born-roosevelt-digs-deep-for-texas-oil-found-with-co2.html
"but we'll see that money trinkle down the banksters pants in about 10 years."
Demand for high priced hookers, coke and escorts have Ballooned.
This 'weather' excuse must mean that 'blame Bush' is retired?
And if the weather was bad, they would blame the bad weather? Is anything Obams fault? Answer is, only if it is good news and he can take credit for something he had nothing to do with like Bin Laden. Where the fuck did this guy come from and what were you people thinking when you voted for this?
i blame my weight problem on the sun.
I guess aspiring unenployed women should become hookers and ambitious men drug dealers so they can cater to the banksters. Skip boring college. That's QE for you.
Does "building derivatives" count in the manufacturing column?
The FED is starting to remind me of the Soviet Union. If the grain crop wasn't being ruined by drought it was flood, hail, wind or fire. You'd think the weather was never normal a single year in the entire existance of the USSR.
That Dam George Bush is to Blame! /syn
just reminds me of a DDR joke: What are the 4 principal enemies of strong growth in the US ?
winter, spring, summer, fall
Congress and Obama should finally start concentrating on jobs and not all the other bullshit, but no they too busy fighting over Benghazi report bs, gun rights, day of prayer, penny, debt ceiling etc.
Both Rebs and Dems said in last 2 elections that "THIS IS ABOUT JOBS!!" I understand that people eat this reality-tv shit, people are generally idiots, but the whole of media?