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Chicago PMI 59.6 Beats Despite Decline: Employment Drops Most Since April

Tyler Durden's picture




 

The worst news that could happen for stocks today was a Chicago PMI beat - after all it is becoming all too clear that the market is begging for a tapering of the tapering, and any and every bad news will be welcome. Alas, the Purchasing Managers Institute did not get the memo, and moments ago MNI-Deutsche Boerse reported (to subscribers first), that the January print was 59.6, below the revised December print of 60.8 but above the expected 59.0. This was thje third consecutive monthly fall following October’s jump to the highest since March 2011.  The only silver lining for stocks was that the Employment component slipped into contraction for the first time in nine months, printing at 49.2, down from 51.6. Must have been the fault of that horrible polar vortex in January then.. Or Bush of course.

According to the report, "the Employment component fell sharply for the second consecutive month to the lowest since April 2013. The majority of companies said their workforce was unchanged with some of them reporting higher productivity of their employees." And now we look forward to more baffling with bullshit from both ADP and the BLS, which are sure to also contradict each other in an economy where every print is now certifiably made up by goalseek-o-trons.

The other components of note: price paid modestly higher at 64.9 from 63.3, as well as Production, New Orders and Order Backlogs which also increased slightly, having fallen for the past two months.

Prices Paid rose to the highest level in more than a year as suppliers continued to request price increases.
Commenting on the MNI Chicago Report, Philip Uglow, Chief Economist at MNI Indicators said, “Business activity continued to ease in January but remained at a relatively high level. Production and New Orders remained firm, and while Employment fell back into contraction, this doesn‘t appear to be indicative of current demand conditions.”

“There have been concerns that putting the brakes on monetary easing could damage business. Most respondents, though, thought that the Federal Reserve’s decision to begin tapering their bond purchases in December would not have a significant impact on their business”, he added.

Let's refresh that in a month or so...

 

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Fri, 01/31/2014 - 10:59 | 4387752 kliguy38
kliguy38's picture

gotta love it.......just gets better and better......thnx for the memories USSA

Fri, 01/31/2014 - 12:05 | 4388102 National Blessing
National Blessing's picture

It's kind of cool.  Those free-market capitalists really need Bernanke's mother's milk to survive.  They're just a bunch of Ivy League welfare witches.

Fri, 01/31/2014 - 10:59 | 4387756 Cognitive Dissonance
Cognitive Dissonance's picture

"The worst news that could happen for stocks today was a Chicago PMI beat - after all it is becoming all too clear that the market is begging for a tapering of the tapering, and any and every bad news will be welcome."

OK, now I'm confused. Is good news bad news or is good news good news today?

Fri, 01/31/2014 - 11:02 | 4387768 TeamDepends
TeamDepends's picture

Yes.

Fri, 01/31/2014 - 11:06 | 4387788 Cognitive Dissonance
Cognitive Dissonance's picture

Thank you!

Strangely I still feel confused. But now I have a clear concise actionable answer to my question.

<Calling broker to buy buy buy.>

Fri, 01/31/2014 - 11:32 | 4387912 nightshiftsucks
nightshiftsucks's picture

Bend over cog and grab your ankles,it will all become clear.

PS Don't ask me how I know that.

Fri, 01/31/2014 - 11:38 | 4387954 fooshorter
fooshorter's picture

I have an algo you can use. Its worked for me:

 

Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em Stack'em 

 

high bitches.

 

 

 

Fri, 01/31/2014 - 11:16 | 4387818 RSloane
RSloane's picture

Uh wait....I got it! The good news is that more people lost their jobs thereby enriching the coffers of the people who fired them. Progress forward!

Fri, 01/31/2014 - 11:01 | 4387766 new game
new game's picture

only an algorithyme can answer that.

Fri, 01/31/2014 - 11:03 | 4387774 buzzsaw99
buzzsaw99's picture

survey conducted by the senior deputy adjutant to the assistant comptroller general for interplanetary gravitational distortions and domestic economic realignment bytchez

Fri, 01/31/2014 - 11:05 | 4387777 ejmoosa
ejmoosa's picture

No one should be surprised going forward about weak employment.  Corporate profit growth year over year is at their lowest level in five years.  Companies will adjust and right-size until, overall, corporate profits rise above 8% year over year growth.

 

It's why they are in business-to grow profits...not maintain them.

Fri, 01/31/2014 - 11:13 | 4387806 Rip van Wrinkle
Rip van Wrinkle's picture

The question you want to be asking is 'who the fuck is going to be able to afforf to buy their produce?'

Fri, 01/31/2014 - 12:33 | 4388237 ejmoosa
ejmoosa's picture

No, the question is what is reducing the profit growth of businesses so that they must right-size.

 

It ain't the cost of produce.

 

It's the costs asscociated with a managed economy.

Fri, 01/31/2014 - 11:05 | 4387782 MFLTucson
MFLTucson's picture

The clown shows continues in the swamp of America.

Fri, 01/31/2014 - 11:07 | 4387783 Obama_4_Dictator
Obama_4_Dictator's picture

I'm sorry this is how I feel today:  Yes, FUCK yes, eat it Bernake, egg, ehhh EHHH, HELL YEAH, FINALLY, *pumps fists....let this be the real DEAL, I've waited so long, finally it's happened to me! Could not have happened on a better day - Bernake's last day. Burn market burn....FUCK YESSSSS!  WOOO HOOOO....TIME FOR A DRINK!!

Fri, 01/31/2014 - 11:25 | 4387876 Obama_4_Dictator
Obama_4_Dictator's picture

Really - a red arrow.  Come on - you know it's awesome!

Fri, 01/31/2014 - 11:07 | 4387784 29.5 hours
29.5 hours's picture

 

 

"Most respondents, though, thought that the Federal Reserve’s decision to begin tapering their bond purchases in December would not have a significant impact on their business"

Clearly the PMI stats are based upon the brightest bulbs in the producer universe.

 

 

Fri, 01/31/2014 - 11:06 | 4387786 replaceme
replaceme's picture

Why do they even put that in readable form any more, it only makes the algos mad.  Anyone that cares and has any real influence reacted to that info before it ever hit the coconut telegraph.  A margerita almost sounds good, thanks me.

Fri, 01/31/2014 - 11:07 | 4387787 jtz5
jtz5's picture

So a 3.8% drop in the S&P causes these aholes to alert warning signs that tapering must stop?  WTF.  Thanks Bernanke, you douchebag.

Fri, 01/31/2014 - 11:08 | 4387790 balanced
balanced's picture

Celente called it on KWN back on Jan. 24th:

"So here is our forecast:  Barring a major economic panic between now and when the Fed meets later this [January], absent that they taper.  You are already seeing the investors fleeing the emerging markets in droves.  You are looking at their stock indexes going way down.  There is going to be (even) more panic with another taper.

After this taper, they are going to come up with another stimulus plan and they will dump more dough in there (to the system).  That is when you are going to see gold and silver prices spike."

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/24_Ce...

Fri, 01/31/2014 - 11:10 | 4387799 Dr. Engali
Dr. Engali's picture

Paging Hilsenbarf...paging Hilsenbarf.. You're on deck for a 3:30 save the tape article.

Fri, 01/31/2014 - 11:59 | 4388081 AynRandFan
AynRandFan's picture

Maybe PMI is just trying not to be prosecuted by Holder's Dept of Progressive Justice.

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