Philly Fed Misses, Market Soars As Inflation Roars Back With Prices Paid Doubling

Tyler Durden's picture

Love bizarro day, Embrace bizarro day, Have its child. The Philly Fed missed consensus of -15.0, printing at -17.5, though better than last month's abysmal -30.7 print... and stocks rip on expectations of more, more, more, intervention. As for how QE will work when the Philly Fed just announced its Prices Paid category doubled from 12.8 to 23.2... well, it don't matter to Jesus.

From the report:

"Responses to the Business Outlook Survey this month suggest that regional manufacturing activity is continuing to contract, but declines are less widespread than in August. The survey’s broad indicators for activity, shipments, and new orders all remained negative for the second consecutive month. Responding firms, however, indicated that employment was slightly higher this month. The broadest indicator of future activity remained positive and rebounded this month, suggesting that recent declines are not expected to continue over the next six months."

And on Inflation, which is back:

Increasing costs were somewhat more widespread this month compared to last month. Nearly 29 percent of firms reported paying higher prices for inputs this month. Only 6 percent reported lower prices. The prices paid diffusion index increased 10 points, its first one?month increase in seven months.

Full table:

And chart:

Source: Bloomberg

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oogs66's picture

off topic, but lagarde looks like someone from star wars clone wars

spiral_eyes's picture

You can't fix manufacturing without first recognising that the US government through all of its war/security/global police spending is effectively subsidising Chinese manufacturing by keeping international trade costs artificially low. 

Zeilschip's picture

Oh wait, so the US is subsidizing China? Right, and all along I thought Chinese workers helped to keep inflation low worldwide for years by working for peanuts.

spiral_eyes's picture

That is also true — but it wouldn't be possible if America hadn't sabotaged its economy with massive, massive, massive military spending in the pursuit of global stability. Chinese goods are far more competitive because the transit is being subsidised. Without America playing world policeman, China would have had to develop its own domestic market (as well as other Eurasian markets), much more to achieve the same levels of output.

baten's picture

Who the fuck appointed Amerika "the world policeman"? Or elected, for that matter.

OTOH imagine how much could have Amerika bought from China if it DIDNT spend that much on militarization.

JW n FL's picture



The American Tax Payer spend 10 Times more on Wall Street than the United States Military. Fact.

10 times more to the Lobby Whores Owners / PIMP's!


Cognitive Dissonance's picture


Love bizarro day, Embrace bizarro day, Have its child.


At this point they are all bizzaro days. But I know what you mean anyway.

Temporalist's picture

"Would you like to touch my monkey?  Touch him!  Love him!  Now I'm as happy as a little girl."

DeadFred's picture

Worry not, they just ran this short squeeze up near the top Bollinger band and the bands are still contracting. Robots do not violate the bands, it's against their programming/religion.

Popo's picture

Although there's nothing bizarro about the coming margin compression.


Rising input prices  vs. declining consumer spending means profit margins are going to get squeezed razor thin.


Let's see what happens to corporate earnings then.   The PE ratios of every company on the S&P are going to be *real* bizarro land...   of course,  that kind of bizarro land only exists very briefly -- until we go over the edge...



TradingJoe's picture

I don't care and so should you!

ww2vet's picture

ph fed index held above 2008 and turned up-econ on the mend

reader2010's picture

Inflationary moment in the grand deflationary ocean. 

tallen's picture

BTFD in gold. Central bankers giving us a firesale price again. Thanks.

New Survivalist's picture

Jesus bought the fucking dip. I know, he told me.

Misean's picture

You always bet more when your are chips are worth less.

Zeilschip's picture

Relatively speaking you are correct.

Al Huxley's picture

Just always do the opposite of whatever would seem to make sense.

buzzsaw99's picture

you can give your heart to jesus but your ass belongs to the bernank.

Sequitur's picture

Yes, deflation, no question. Gold will fall further. GLD is going to get fucking hammered.

MFL8240's picture

Interesting comment again.  Have you ever looked at what Gold has done in a defaltionary enviorment?  Maybe it would be a good idea rather than make such stupid comments??  

jimmyjames's picture

Yes, deflation, no question. Gold will fall further.


Another one who has it completly assbackwards-

Today the Inflation trade is on--Gold is down-

What part of all this are you having trouble seeing-

1980-2001 Inflation all the way and Gold did nothing-

So is Gold an Inflation play in your mind?

Pay attention-

All Deflationary trading and look what we have below-




Theta_Burn's picture

Tragical history tour


Id fight Gandhi's picture

I sleep in a couple hours and wake up to this?

I swear the anchor on cnbs said this was better than expected.

dwdollar's picture

Haha...  this market is a clueless bipolar schizoid.

MFL8240's picture

Macro news does not matter, ....what is the purpose of any of this analysis?  This is about rumors, bailouts, stimulus and propaganda.  Throw the fundamentals out, this world is now out of control.

Mitzibitzi's picture

I read that aloud to my significant other and she said, "Maybe they've just realized that all the solutions they read about in college textbooks don't work in real life. So they've decided to do all the things that should make things worse, or just random shit? Then see what happens."

Seems as likely as any other explanation, cos whatever IS going on makes no sense to me.

Zola's picture

Maybe ZH should purchase an OPed or an article to expose the BLATANT manipulations and Cronyism happening in this market ? A bit like GATA did a while back ?

Josh Randall's picture

The Morgue needs more unemployed for their SNAP porgram to offset their Silver short position -- so high unemployment is actually BULLISH

SmalleyD's picture

Great Lebowski reference - the Jesus. Am I the first one to get it?

PianoRacer's picture

I logged in to express my appreciation for the subtle Lebowski reference, but you beat me to it.

Still - kudos Tyler!  You rock my world!  This is what happens when you french a stranger in the Alps!

buzzsaw99's picture

What's this day of rest shit? What's this bullshit? I don't fuckin' care! It don't matter to Jesus. But you're not foolin' me, man. You might fool the fucks in the league office, but you don't fool Jesus. This bush league psyche-out stuff. Laughable, man - ha ha! I would have fucked you in the ass Saturday. I fuck you in the ass next Wednesday instead. Wooo! You got a date Wednesday, baby!

SmalleyD's picture

Great Lebowski reference - the Jesus. Am I the first one to get it?

Temporalist's picture

"All your logic are belong to us!"  The Bernank

MonkeySmoke's picture

Bizarro world is just another set up designed to manipulate the populace. The people that are paying attention are sitting on the sidelines with gold, silver or cash and awaiting the real news--either the announcement of QE3 or OT2. Either way, the markets are going to blow up, globally, and the people that are busy with DWTS, Idiol and CNBS will be crushed. That's the game; crush as many as possible at one time.

treemagnet's picture

I wish we had some great news so this thing could crash and get it over with.

dognamedabu's picture

Jesus.. I frikken love that guy and am not even religious.



rexyfloyd's picture

if stocks are rising becuase of QEX expectations then why did Gold and Silver fall? Or was that a big bank intentional takedown to fool the longs?

Awakened Sheeple's picture

Gold had a good run recently as it looked like SWHTF. I'm looking to time the bottom to BTFD.

nincompoop's picture

Tangentally related from defcon 19: HFT trading from an admin's perspecive

Hi ZH.

durablefaith's picture

I know that the last line was just a clever turn of phrase, but for the record, Monetary policy does matter to Jesus.

PaperBear's picture

There is loads of counterfeit gold/silver selling going right now - gold at $1,777/oz and silver at $39.50/oz