Succinctly summarizing the positive and negative news, data, and market events of the week...
Positives
- Conference Board’s consumer confidence survey surges in May [11], 10yr spikes
- Case-Shiller home prices surge in March, ironically led by the same states that fueled the last bubble [12]
- Richmond Fed Mfg beats expectations, however new orders plunge [13]
- NYSE Margin Debt reaches all-time high [14], this should end well
- Dow continues its streak, now 20-20 on Tuesdays [15]
- The next crisis is already contained! Sallie Mae splits [16], with the intent on containing looming student loan bubble
- Q1 US GDP revised down again [17] , and initial claims jump (all news is now good news, as we all know)
- US shrugs off weak 2yr auction, sees stronger 7yr $29bn dollar auction [18]
- UMich Confidence reaches 6 year high but spending slumped [19]?
- Chicago PMI smashes expectations (didn’t work out so well last time [20])
Negatives
- JGB’s define ‘volatile’, exhibit 3 sigma price drop [21]
- This is NOT how you help cash flow Larry: Pensions being hit by ZIRP policy
- ~60% of the S&P’s earnings since Q3 2011 have been due to
CapEx & positive growth projectsbuybacks [22] - Weak US 2yr auction, as US sells $35bn with BTC hitting a two year low [23]
- Crude oil drops [24] on heavy volume
- Cyprus bank deposits fall [25], but don’t tell Krugman
- Japanese equities down, bond prices spike [26]
- Asset allocation of Japanese Public Pension Fund has the fund 64% in JGB’s [27]
- Demand for physical delivery of copper on LME soar to new record [28]
- Income and Spending data considerably worse than expected [29]
- European unemployment hits record high (and youth unemployment is stunningly bad [30])
- Mortgage rates rise to one-year highs
- US equities plunge into month-end [31]
Additional
- Peak Collateral: [32] Are there enough assets to sustain the demand for credit?
- Hugh Hendry’s latest outlook [33]
- David Stockman again takes Central Planners to task [34]
- Jeff Gundlach on Central Planner’s making economic analysis irrelevant [35]
(h/t @ZH_Crown)