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And Another Miss: Industrial Production Contracts 0.1% On Expectations Of A Rise
First it was the Empire Mfg Index. Now it is the turn of Industrial Production which as the Fed just reported declined by -0.1% in October, a drop from the upward revised 0.7% increase in September driven by a -1.6% collapse in mining and a -1.1% drop in Utilities, while pure manufacturing rose a modest 0.3% in October, just above the 0.1% from September. And confirming the increasing slack, Capacity Utilization dipped once again, from the 78.3 in September, to 78.1 once again driven by a notable drop in Mining Capacity down from 90.5 to 88.7.
The lack of a pick up in the economy is shown below:
From the report:
The production of consumer goods decreased 0.1 percent in October after having increased 0.8 percent in September; in October, the index stood 2.5 percent above its level of a year earlier. The output of durable consumer goods fell 0.2 percent: Gains for home electronics; appliances, furniture, and carpeting; and miscellaneous goods were outweighed by a decrease in the index for automotive products, which nevertheless stood more than 11 percent above its year-earlier level. The index for consumer nondurables was unchanged, as a small increase in the output of non-energy nondurables offset a small decline in the output of consumer energy products. Among non-energy nondurables, gains for foods and tobacco, for clothing, and for paper products were partially offset by a loss for chemical products.
The output of business equipment rose 0.2 percent in October after an average monthly gain of 0.3 percent during the third quarter. The index for transit equipment declined 0.1 percent, the index for information processing equipment rose 0.2 percent, and the index for industrial and other equipment increased 0.3 percent. Over the past 12 months, the production of business equipment has advanced 5.1 percent, with similarly sized gains in each of its three major components.
The output of defense and space equipment rose 0.5 percent in October following gains of 0.8 percent in September and 2.1 percent in August. The index for October was 3.3 percent above its year-earlier level.
Among nonindustrial supplies, construction supplies recorded its fifth consecutive monthly increase; the index moved up 0.3 percent in October and was 6.6 percent above its level of a year earlier. The output of business supplies moved up 0.2 percent in October; despite having gained 3.0 percent over the past 12 months, the index was still about 8 percent below its pre-recession peak.
In October, the production of materials to be processed further in the industrial sector decreased 0.4 percent, a decline that was driven by a drop of 1.5 percent in the production of energy materials. The output of durable materials rose 0.3 percent, as increased production of equipment parts and other durable materials more than offset a decline in the output of consumer parts. The production of nondurable materials moved up 0.4 percent; textile, paper, and chemical materials each registered gains of 0.5 percent or more, while the index for other nondurable materials was little changed.
In short: the news today so far has been bad enough to validate the "BTFATH mentality" which means Kevin Henry's 1800 price target on the S&P remains unchanged.
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S&P 500 at 1800 today.
The 29.5 hour/week workforce is coming up jiiiiiiist a tad short.
it's all starting to look like trying to bail out the Titanic now while the Fed keeps the band playing.
When does it all finally go under?
Once again, it goes under when essential commodities cannot be delivered at any price. Until then the rich will most definitely get richer (at least on paper).
hedge accordingly.
Indeed. TPTB will destroy all fiats, so that one "unifying" fiat can be brought forward. Unfortunately, you can create all the credit you want from thin air, the calories that are actually required in order to create real products of real value cannot be pulled out of thin air. I am glad I went long all the international energy companies before Warren did...
Forget it... We're heading back into the Dark Ages soon.
Pressflow, bitchez.
Just keep printing you $#@$#
printing is working so well. i think yellen was chosen because she is such a stupid twat. it'll be easy to pass the blame on her..,..even tho she'll just continue ben's failures. i expect the trickle down effect to begin any decade now.....
So mining is down? Probably it's all those coal mines shutting down, and the coal-burning utilities are following suit. Thank Obama for the clean air you have to breathe. At least when you're sleeping in a cardboard box in some alley you won't be choking on all that dirty air!
Makes perfect sense to me, shut down coal mines and plow under prairies to plant corn for fuel. Forward!
Makes perfect sense to me, shut down coal mines and plow under prairies to plant corn for fuel. Forward!
SORRY BABY!! THIS SHIT NORMALLY NEVER HAPPENS TO ME!!!
GIME 15 MINUTES!!
You wouldn't think she would notice a 0.1% collapse. But maybe she would.
Put the POMO here Yellen, you fucking asshole!!!
I'm still trying to figure out what we manufacture besides toxic debt, derivatives, and feces.
expensive porn and marijuana
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It is silly season so I just went long for the first time in 3+ years. Prepare for the dump, folks.
Top in place as confirmed by Dr Venkman ;)
Wait for it, I am not completely long all my equities yet. I'll let you know when this happen, then and only then will the top be in...
Buy the dip? Buy the dip.