Three days ago the New York Fed released the December print Empire State index [4]which showed a broad contraction across all key verticals. Today, in fine "keeping them baffled with bullshit" form, the Philly Fed swing precisely the other way, and despite expectations for a second consecutive negative print of -3 to be precise, up from -10.7 last month, the General Business Activity indicator printed at 8.1, the highest print since April, with New Orders at 10.7, the highest since February, and Employment at 3.6, the highest since April. Naturally, the algos pretending to trade on news, took this news and ran futures higher, even though this implies a sooner end to Fed easing (wink wink), having done precisely the same with the NY Fed data on Monday, when inversely it implied an even more infinite QE4EVA. Needless to say, all economic data in the US at this point is completely meaningless, with regional distortions, seasonal adjustments, political pressures and overall central planning making a mockery of the US economic data apparatus. The good news, of course, is that economic data has ceased to matter long ago. The only thing that matters now: how will the House vote later today.
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Source: Philly Fed [7] [7]