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Week 13 - 2013
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Week 13 -2013 | From Mar. 25 to Mar. 29, 2013
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Market Holidays
 
Mkt
Time
Mon - Mar. 25
Tue - Mar. 26
Wed - Mar. 27
Thu - Mar. 28
Fri - Mar. 29
         
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Economic Data for Week 13-2013 | Global View | Week Rating
DATE DAY REPORT/CATEGORY HIGHLIGHTS ON WEEK 13-2013 LAST
Mon Chicago Fed Nat Activity Index The economy strengthened marginally in January 2013 with the Chicago Fed National Activity Index (CFNAI) 3 month moving (3MA) average rising to the highest level since January 2012.
0.44
Level
Chart View Growth The 3MA has been in positive territory (for the last 3 months) indicating national economic activity was above its historical trend, but above the levels associated with recessions.
Positive View
Tue ICSC Goldman Sachs Index U.S. store sales slumped last week as cold weather kept many shoppers inside their homes. The average temperature was a whopping 15 degrees cooler than the same week last year.
1.0%
Y/Y
Chart View Sales and Inventories The ICSC-Goldman store sales index sunk to year over year gains of only +1.0% from +2.3% the week prior. This is the slowest this metric has been since February of 2010.
Negative View
Tue Durable Goods Orders The U.S. Census Bureau reports that new orders for durable goods increased 5.7%, or $12.4 billion, in February 2013 to a seasonally adjusted $232.1 billion.
N/A
Chart View Manufacturing Durable goods orders are up 5 of the last 6 months, with January's -4.0% change being the trend-breaker. February US Durables Soar, Bolstered by Transportation.
Positive View
Tue Johnson Redbook The Redbook store sales index is now only +2.6% year over year compared to +2.9% Y/Y the week prior.
2.6%
Y/Y
Chart View Sales and Inventories The descriptions of the week are entirely different with ICSC-Goldman warning that cold weather hurt sales of spring goods while Redbook says consumers, anticipating better weather.
Positive View
Tue S&P Case-Shiller Index Home prices climbed to a six-year high. The S&P/Case-Shiller 20-city composite index edged up 0.1% to take the year-on-year gain to 8.1%.
1.0%
M/M
Chart View Real Estate U.S. home prices edged up in January 2013 to make the year-on-year improvement the fastest in more than six years, according to data released Tuesday.
Positive View
Tue New Home Sales The Commerce Department said on Tuesday sales dropped 4.6% to a seasonally adjusted annual rate of 411,000 units. Last month's decline followed a 13.1% jump in January 2013.
411K
Chart View Real Estate Sales of new U.S. single-family homes fell more than expected in February 2013 after hefty gains the previous month, but steady gains in home prices suggested the housing market recovery remains intact.
Negative View
Tue Consumer Confidence Consumer confidence plunged in March 2013, slumping to a reading of 59.7 in March 2013 from 68.0 in February 2013, the Conference Board reported Tuesday.
59.7
Level
Chart View Consumer Most of the drop came from a decline in the expectations index, which slumped to 60.9 from 72.4, though the present situation index also fell, to 57.9 from 61.4. The Conference Board said the sequester has created uncertainty surrounding the economic outlook
Negative View
Wed MBA purchase Applications The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 7.7% in the week ended March 22, 2013.
7.7%
W/W
Chart View Real Estate Applications for U.S. home mortgages rebounded last week as interest rates pulled back for the first time in three weeks, data from an industry group showed on Wednesday.
Positive View
Wed Pending Home Sales Index Pending sales of homes declined 0.4% in February 2013, while longer-term trends showed continuing growth, the National Association of Realtors reported Wednesday.
0.4%
M/M
Chart View Real Estate The pending-home-sales index decreased to 104.8 in February 2013 from 105.2 in January 2013, but was up more than 8% from 96.6 in February 2012. An index reading of 100 equals the average level of contract activity during 2001, the first year of data.
Negative View
Wed EIA Crude Oil

U.S. crude oil inventories rose more-than-expected last month, official data showed on Wednesday. Analysts had expected U.S. Crude Oil Inventories to rise 0.705M last month.

3.3M
Barrels
Chart View Commodity The Energy Information Administration (EIA) said that U.S. Crude Oil Inventories rose to a seasonally adjusted annual rate of 3.256M, from -1.314M in the preceding month
Neutral View
Thu Jobless/Initial Claims Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 357,000, the Labor Department said. Still, they remained in the middle of their range for this year.
357K
Claims
Chart View Employment The number of Americans filing new claims for unemployment benefits rose more than expected last week, but probably not enough to suggest the labor market recovery was taking a step back.
Negative View
Thu Gross Domestic Product (GDP) GDP expanded at a 0.4% annual rate in Q4-2012, the Commerce Department said, just below the 0.5% gain forecast. The growth rate was the slowest since the first quarter of 2011 and far from what is needed to fuel a faster drop in the unemployment rate.
0.4%
Q/Q
Chart View Growth The U.S. economy expanded at a sluggish pace in the fourth quarter although a big gain in business investment and higher exports of services led the government to push up its previous estimate for growth. Conclusion: U.S. growth at year end better than thought.
Positive View
Thu Corporate Profits The U.S. economy's performance in the fourth quarter was not quite as bad as it first appeared, it turns out. And corporate profits rose in 2012 to an all-time high.
13.3%
Y/Y
Chart View Growth After-tax corporate profits climbed 3.3% in the fourth quarter and 3.7% for all of 2012, adjusted for inventories and other special accounting effects. The level of adjusted corporate profits the highest ever are now 41% larger compared to the year before the last recession began. That could lead to more business spending later in the year.
Positive View
Tue Chicago PMI

The Chicago Institute for Supply Management's purchasing managers' index veered downward, falling 4.4 points to 52.4 in March 2013.

52.4
Level
Chart View Manufacturing After a strong start to the year, the business barometer was knocked back by steep declines in new orders, production, and another dip in order backlogs. All other business activity measures also declined in March 2013, the exception being supplier lead times, which lengthened considerably.
Negative View
Thu EIA Natural Gas Report Working gas in storage was 1,781 Bcf as of Thursday, March 28, 2013, according to EIA estimates. This represents a net decline of 95 Bcf from the previous week.
-95
bcf
Chart View Commodity The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended March 15 fell by 95 billion cubic feet, compared to -62 bcf last week.
Neutral View
Thu Fed Balance Sheet The Fed's asset holdings in the week ended Wednesday Mar 28 decreased $4.6 billions from a gain of $41.5 billions the prior week, the central bank said in a weekly report released Thursday.
$-4.6
Billions
Chart View Government The U.S. Federal Reserve's balance sheet exceeded $3 trillion, (Total Assets = $3.204 trillion), as the central bank continued with its efforts to spur the economy through bond purchases.
Neutral View
Thu M2 Money Supply M2 Weekly Change $16.7 Billions from last week $1.9B revised.
$1.8
Billions
Chart View Money Supply M2 included M1 and, in addition, short-term time deposits in banks and certain money market funds. In general, an increase in the supply of money typically lowers interest rates.
Neutral View
Fri Fixed Mortgage Rates As of February 28, 2013, interest rates for a 30-year fixed-rate mortgage were at 3.51%, according to Freddie Mac. The lowest they've hit historically was 3.38% in December 2012.
3.51%
Chart View Interest Rates The 15-year FRM, a popular choice for those looking to refinance, up to 2.76% from 2.72% in the previous week.
Positive View
Fri Personal Income Personal income increased $143.2 billion, or 1.1%, and disposable personal income (DPI)
increased $127.8 billion, or 1.1%, in February 2013.
1.1%
M/M
Chart View Consumer In February 2013 Personal income fell as expected in January 2013 due to fiscal cliff effects but fell more than expected. However, consumer spending held up.
Negative View
Fri Consumer Spending Real PCE

Personal consumption expenditures (PCE) increased $77.2 billion, or 0.7%. In January 2013, personal income decreased $513.5 billion, or 3.7%, DPI decreased $498.3 billion, or 4.0%, and PCE increased $40.8 billion, or 0.4%, based on revised estimates

0.7%
M/M
Chart View Consumer Consumers increased spending 0.7% in February 2013 compared with January 2013. It was the biggest gain in five months. The government also revised January 2013 spending to show a 0.4% gain, double the initial estimate.
Positive View
Fri Core PCE The core PCE was up 1.3%, following 1.4% the month before. The strong spending gains prompted some economists to boost their outlook for overall economic growth in the January-March 2013 quarter.
0.1%
M/M
Chart View Inflation Some think the economy grew at a 3% annual rate during the quarter, up significantly from 0.4% rate in the October-December 2012 quarter.
Neutral View
Fri Consumer Sentiment The Thomson Reuters/University of Michigan sentiment index advanced to a four-month high of 78.6, exceeding all estimates in a Bloomberg survey, from 77.6 in February 2013. The median forecast was 72.6 after a preliminary March 2013 reading of 71.8.
78.6
Level
Chart View Consumer Confidence among U.S. consumers unexpectedly increased in March 2013 from the prior month as Americans grew more optimistic about the outlook for the economy.
Positive View
     
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WEEK 13-2013
ECONOMIC REPORTS Positive View Negative View Neutral View RATING REPORTS HIGHLIGHTS OF WEEK 13-2013
01. Interest Rates
1
Positive View
 
02. Growth
3
Positive View
U.S. growth at year end better than thought.
03. Inflation
1
Neutral View
 
04. Employment
1
Negative View
Not-So-Great News for Jobless Claims and GDP.
05. Real Estate
2
2
Neutral View
U.S. New Home Sales Drop as Prices Rise
06. Manufacturing
1
1
Neutral View
Durable Goods Orders Increase 5.7% In February
07. Consumer
2
2
Neutral View
U.S. consumer spending and income both up in February: boosting growth forecasts.
08. Sales & Inventories
1
1
Neutral View
 
09. Business Activity
Non Available
 
10. Government
1
Neutral View
 
11. Balance of Payments
Non Available
 
12. Money Supply
1
Neutral View
 
13. Banking System
Non Available
 
REPORTS WEEK 13-2013
10
7
3
Positive View
 
MARKET CORRELATION Positive View Negative View Neutral View RATING MKT CORRELATION HIGHLIGHTS OF WEEK 13 -2013
COMMODITY - Oil
1
Neutral View
Rising commodity prices arouses fears of inflation.
COMMODITY - Natural Gas
1
Neutral View
If interest rates rise, bond funds will go down.
ECONOMIES - Europe
Non Available
Raising interest rates to combat inflation might stop economic expansion.
ECONOMIES - China
Non Available
If Economy starts to improve the dollar will strengthen and Gold will fall.
TOTAL WEEK 13-2013
10
7
5
Positive View
Week 13, 2013 has been rated ...
   
         
LEGENDS: Rating Explained Rating Explained Chart View Chart View Positive View Positive View Negative View Negative View Neutral View Neutral View N/A Non Available
         
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WEEK 13-2013 ENDING MAR. 29
Reports Commentary

Demand for long-lasting U.S. manufactured goods surged in February, though a gauge of planned business spending slipped after surging the previous month, suggesting factory activity continued to expand at a moderate pace.

Durable Goods

Durable goods orders jumped 5.7% as demand for transportation equipment rebounded strongly, the Commerce Department said on Tuesday. The rise last month in durable goods orders, which range from toasters to aircraft, reversed January's 3.8 percent plunge.

Housing

A measure of Americans who signed contracts to buy homes fell only slightly in February to the second-highest level in nearly three years. There is generally a one- to two-month lag between a signed contract and a completed sale. In February, completed sales of previously occupied homes rose to the fastest pace in more than three years. The gains in both signed contracts and completed sales point to a housing recovery that is strengthening.

Growth

Growth in the final three months of last year was pushed up to 0.4% from 0.1% in the government's third and final analysis of gross domestic product.

The higher profits would also seem to support the argument of equity bulls who say the runup in U.S. stock prices is justified by an improvement in corporate balance sheets.

Higher profits also prompted businesses to return more cash to shareholders in the fourth quarter, though some dividends were granted on a special onetime basis ahead of a tax increase in 2013.

Since the beginning of this year, US fixed mortgage rates have maintained a modest upward trend as the housing market bottoms out. But rates remained at an affordable level for house buying and refinancing.

What do the Economic Reports reveal about the state of the economy?

  1. Not-So-Great News for Jobless Claims and GDP.

  2. U.S. New Home Sales Drop as Prices Rise.

  3. Durable Goods Orders Increase 5.7% In February.

  4. U.S. consumer spending and income both up in February: boosting growth forecasts.

  5. U.S. growth at year end better than thought.
       
    To prepare for this week we have posted the following Blog:    
    Europe is Now Experience Stagnation    
         
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    To prepare for this week we have posted the following Blog:    
    Europe is now experience Stagnation    
         
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