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"Unambiguously Good"? Dallas Fed Collapses To 20-Month Lows As Orders Plunge
Who could have seen this coming? Well apparently all but one economist (TD Securties Greene and Mulraine had a -5.0 est) as the -4.4 print is almost a 4 standard deviation miss from extrapolator's and hockey-stickers' dreams. Following December's drop and miss, the Dallas Fed Manufacturing index is now at its lowest since May 2013. All components dropped, apart from inventories as 11% of firms reported layoffs and wage pressures eased.
Ugly...
as New Orders collapse...
Some of the details are extremely worrisome...
The shipments index plunged from 20.8 to 6, due to a much higher share of respondents noting a decline in shipments in January than in December
Wage pressures eased, while input and selling prices declined in January. The raw materials price index came in at -1.7, its first negative reading in more than five years.
The finished goods price index fell 11 points to -6.7, after posting positive readings during the past 17 months.
Looking ahead, 29 percent of respondents anticipate increases in raw materials prices over the next six months, while 19 percent expect declines.
The wages and benefits index receded from 25.2 to 19.1, suggesting some moderation in upward pressure on compensation costs.
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Fed misses another mole in the "Fed Wac-O-Mole" saga.
IBM to layoff 26% (112,000) next week.
http://www.bidnessetc.com/33231-international-business-machines-corp-ibm...
Boom, fewer employees but "higher wages" I am sure...
Also doubled down on Stawk buybacks with free money....only things which really matter now.
Wages of 112,000 folks could buy back a lot of stock keeping the elite well rewarded for a couple more years.
"Let them eat pink slips." Another new mantra.
All this news is bullish. Time to BTFD.
Gasoline is 50% off.
Unambiguously good.
They are getting their fairy dust and unicorn pee from China now and there appears to be a few quality control problems but not to worry, they'll do better next time...promise and swearsy's.....
it snowed in dallas that one day, for 3 hours.......
Better crank those printing presses up to eleven old Yeller.
Almost bad enough to push us green. Haha - annnnd we're green... confidence restored.
This is a DOW boost for sure. All eyes are on the smoke stacks over at the Eccles building. Wonder what color it will be?
Most likely green...
No, unambiguously bad. The US now pumps more oil than Saudi Arabia. It should be treated like an oil exporter, only it can't export the expensive-ass oil it has produced. LOW oil will kill the US this time.
People in 2000: Dotcom shit will never go down.
People in 2008: Housing will never go down.
People in 2015... Energy will never go down.
It's always something people hadn't thought of before that catches everyone by surprise. If Yellen raises rates, it'll be a bloodbath. It'll be a bloodbath anyways. She'll need to start QE 4 to keep our oil prices competitive...
pretty sure this was expected by everyone already. It's a product of lower oil prices. I'm not reading too much into it. All the bearish sentiment of late on ZH is oil focused. A rebound in oil prices will wipe the entire bear theory.
Yea and a 30% drop in S&P would wipe the entire 'bull theory'....so what?
If it's a demand issue, why would you expect oil prices to rebound?
Not only that but China and India have topped off their tanks at these bottom basement prices.
Who will be the buyers now?
I buy some every week.
Hey as long as the free money is flowing and Johnny5 is manning the 'all green' switch, nothing can be bad.
Its the future weather problems in the east. Transitory.
Problems? It's the weather that they use to revize GDP!
BULLISH!
Hope and change, bitches!
I've been beating this drum for the pat couple weeks, but will say it again: it's late 2008 2.0. Non-rigged data keeps showing the exact same types of declines.
BDI, orders, copper, PMIs, the list goes on. The only difference is that you don't have people on CNBC screaming that the world is ending and they're not calling special sessions of congress to talk about tanks in the street.