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Week 20 - 2013
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Week 20 -2013 | From May. 13 to May. 17, 2013
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Market Holidays
 
Mkt
Time
Mon - May. 13
Tue - May. 14
Wed - May. 15
Thu - May. 16
Fri - May. 17
         
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Economic Data for Week 20-2013 | Global View | Week Rating
DATE DAY REPORT/CATEGORY HIGHLIGHTS ON WEEK 20-2013 LAST
Mon Retail Sales Sales at U.S. retailers rose slightly in April 2013 and exceeded Wall Street's forecast, as broad demand for most goods outweighed a sharp drop in spending at gas stations.
0.1%
M/M
Chart View Sales and Inventories Retail sales rose a seasonally adjusted 0.1% last month, the Commerce Department said Monday, in a sign that consumer spending might not have softened as much as expected. Consumers evidently used some of their savings at the gas pump to boost spending on electronics, clothes and hobby items, among other things.
Positive View
Mon Business Inventories Business inventories were flat in March 2013 at a seasonally adjusted $1.64 trillion, the Commerce Department said Monday.
0.0%
M/M
Chart View Sales and Inventories The $1.64 trillion represents 4.5% gain from the same period in 2012. Sales dropped 1.1% in March 2013, and the year-on-year gain was 1.8%. The inventory-to-sales ratio rose to 1.29 from 1.28.
Neutral View
Tue ICSC Goldman Sachs Index Cold weather once again pulled down store sales, according to ICSC-Goldman whose same-store sales index fell 2.0% from the prior week for a year-on-year rate of only plus 1.2%.
1.2%
Y/Y
Chart View Sales and Inventories This is the lowest rate since a plus 1.0% rate in mid-March 2013 when cold weather was also hurting sales. These are the two lowest year-on-year rates for this series of the recovery.
Negative View
Tue Import and Export Prices The prices paid for imported goods fell 0.5% in April 2013, mainly because of lower oil costs. Over the past 12 months, import prices are 2.6% lower. The price of U.S.-made goods exported to other nations, meanwhile, declined by 0.7% in April 2013 after a revised 0.5% drop in March 2013.
-2.6%
Y/Y
Chart View Inflation Excluding fuel, import prices fell by a smaller 0.2% in April 2013. Fuel import prices sank 1.7% last month after a 0.6% drop in March 2013. The drop in import prices in March 2013 was revised to show a 0.2% decrease instead of 0.5% as originally reported.
Positive View
Tue Johnson Redbook Redbook reports a sales uptick for chain stores last week, at a plus 2.8% year-on-year same-store rate which is up five tenths from the prior week's rate.
2.8%
Y/Y
Chart View Sales and Inventories The improvement in Redbook Sales contrasts with ICSC-Goldman which reported a negative reading due to abnormally cold weather.
Positive View
Wed MBA purchase Applications The purchase index moved down from multi-year highs, falling 4.0%, with the refinance index showing an even steeper decline, down 8.0%.
-7.3%
W/W
Chart View Real Estate The average rate for 30-year fixed mortgages with conforming balances ($417,500 or less) rose a very steep 12 basis points in the week to 3.67% pulling down mortgage activity sharply in the May 10 week.
Negative View
Wed Bank Reserve Settlement Bank Reserve Settlement is the date where commercial banks must meet reserve requirements stipulated by the Federal Reserve.
N/A
Chart View Banking System Bank Reserve Settlement is a two-week period that ends every other Wednesday.
Neutral View
Wed Producer Price Index April 2013 PPI, producer inflation, was lower than expected, and although you and I enjoy lower prices, the Fed is terrified of lower prices. Headline PPI fell in line with expectations due to a drop in gasoline and also food prices.
-0.7%
M/M
Chart View Inflation The core rate actually softened. The April 2013 producer price index fell 0.7% after a 0.6% decrease the month before. Analysts projected a 0.7% decline.
Positive View
Wed Empire Estate Mfg Index The NY region's manufacturing data was atrocious. Its consensus was +3.75 but was -1.43. What's more, this is a diffusion index with the expansion/contraction line at zero; therefore, this is contractionary and quite bearish.
-1.43
M/M
Chart View Manufacturing

The Empire State index fell more than 4 points in the May 2013 report to minus 1.43 for the first negative reading since January 2013.

Negative View
Wed Treasury Intal Capital U.S. accounts bought more foreign securities in March 2013 than foreign accounts bought U.S. securities, making for a rare back-to-back outflow in long-term securities which contracted by $13.5 billion vs February's outflow of $13.3 billion which was revised.
$-13.5B
Chart View Balance of Payments Chinese holdings of U.S. Treasuries are steady in the latest report, at $1.25 trillion, as are Japanese holdings at $1.11 trillion. Foreign investment in U.S. securities has to pick up steam to help offset the government's deficit, which is running at about $70 billion per month, as well as the nation's trade gap which is running in the $45 billion per month range.
Negative View
Wed Industrial Production

Industrial production fell by more than expected in April 2013, reflecting a broad decline in factory output and a weather-related decrease in demand for utilities.

-0.5%
M/M
Chart View Manufacturing Industrial production dropped by 0.5% last month after a revised 0.3% increase in March 2013, the Federal Reserve said on Wednesday. Economists had expected output to decline 0.2% in April 2013.
Negative View
Wed Housing Market Index NAHB Housing Market Index: +3 to 44, vs. consensus of 43; 41 in April 2013. The housing market index shows some improvement this month which points to a bit of acceleration for the new home market.
44
Level
Chart View Real Estate Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale. Builders' main concerns have little to do with demand, and remain centered on rising costs and lot shortages.
Positive View
Wed E-Commerce Sales Q1-2013 e-commerce sales rose a quarter-to-quarter 2.7%, down from the Q4-2012n pace of 4.4%. E-commerce as a percent of total sales rose to a new record 5.5%, up from the prior quarter's 5.4%.
2.7%
Q/Q
Chart View Sales and Inventories Despite the slowing, the gain for e-commerce still easily outpaced the gain for total first-quarter retail sales which were up a quarter-to-quarter 1.1%.
Positive View
Wed EIA Crude Oil WTI crude prices tumbled yesterday after the International Energy Agency said that booming oil output in North America, driven by the shale energy revolution, has created a global supply shock that is reshaping the industry.
N/A
Chart View Commodity North America has set off a supply shock that is sending ripples throughout the world, said IEA Executive Director while presenting the agency's five-year outlook for the oil market.
Neutral View
Thu Jobless/Initial Claims The number of people who applied for new unemployment benefits surged by 32,000 to 360,000 in the week ended May 11, putting jobless claims at the highest level in a month and a half, according to the U.S. Labor Department.
360K
Chart View Employment Continuing claims reflect the number of people already receiving benefits. Initial claims from two weeks ago, meanwhile, were revised up to 328,000 from an original reading of 323,000, based on more complete data collected at the state level.
Negative View
Thu Consumer Price Index Consumer inflation pressures eased in March 2013 as gasoline prices dropped, which could add to fears of renewed deflationary pressure in the economy.
-0.4
M/M
Chart View Inflation The consumer price index for April 2013 fell 0.4% after declining 0.2% in March 2013. The core CPI-excluding food and energy was soft, matching the March 2013 rate of 0.1%.
Positive View
Tue Housing Starts In April 2013, housing starts plunged a monthly 16.5% after rising 5.4% in March 2013. The April 2013 starts annualized level of 0.853 million units fell short of analysts' forecast for 0.969 million units and was up 13.1% on a year-ago basis.
853K
Chart View Real Estate Privately-owned housing starts in April 2013 were at a seasonally adjusted annual rate of 853,000, 16.5% below the revised March estimate of 1,021,000.
Negative View
Tue Building Permits Permits were unexpectedly strong-suggesting forward momentum for the housing sector. April's annualized pace of 1.017 million units was up 35.8% on a year-ago basis.
1,017K
Chart View Real Estate For April 2013, housing starts notably disappointed but housing permits were unexpectedly optimistic. Permits jumped 14.3% after a 6.5% decrease in March 2013. Market expectations were for 0.945 million units for April 2013 permits.
Positive View
Tue Philadelphia Fed Survey Manufacturing in the Philadelphia region unexpectedly contracted in May for the first time in three months as new orders retreated and factories cut back on employment and hours.
-5.2
Level
Chart View Business Activity The Federal Reserve Bank of Philadelphia's general economic index declined to minus 5.2 from 1.3 the prior month. Readings greater than zero signal expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware.
Negative View
Thu EIA Natural Gas Report The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks increased by 99 billion cubic feet last week, above the expected build of about 95 billion cubic feet anticipated by analysts.
99
Bcf
Chart View Commodity Natural gas futures prices were down nearly 1% in advance of the EIA's report, at around $4.03 per million BTUs, and slipped further to around $3.97 immediately following the EIA report.
Neutral View
Thu Fed Balance Sheet The U.S. Federal Reserve's balance sheet expanded in the latest week on higher holdings of Treasuries and U.S. mortgage-backed securities, Fed data released on Thursday showed.
$29.7
Billions
Chart View Government The Fed's balance sheet - a broad gauge of its lending to the financial system - increased $29.7 billion after gaining $7.4 billion the prior week. The boost was led by purchases of mortgage-backed securities which gained $28.9 billion. Treasuries rose $10.2 billion. Partially offsetting, "other assets" fell $11.0 billion.
Neutral View
Thu M2 Money Supply M2 Weekly Change $5.2 Billions.
$5.2
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 Mortgage rates climbed for the second consecutive week, but the rate on the most popular type of mortgage remains lower than it was six weeks ago.
3.71%
Chart View Interest Rates The 30-year fixed-rate mortgage rose 11 basis points to 3.71%. A basis point is one-hundredth of 1 percentage point. The 15-year fixed-rate mortgage rose 10 basis points to 2.92%.
Positive View
Fri Consumer Sentiment Americans' confidence in the economy climbed in May to the highest level in almost six years as rising real estate values and record stock prices boosted household wealth.
83.7
Chart View Consumer The Thomson Reuters/University of Michigan preliminary index of consumer sentiment increased to 83.7, the highest since July 2007, from 76.4 in April 2013.
Positive View
Fri Leading Indicators The index of leading economic indicators surged 0.6% in April 2013 boosted by strength in housing permits. The gain points to rising economic momentum six months out.
0.6%
M/M
Chart View Business Actvity A measure of the U.S. economy's future health rose in solidly in April, buoyed by a sharp rise in applications to build new homes and apartments.
Positive View
     
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WEEK 20-2013
ECONOMIC REPORTS Positive View Negative View Neutral View RATING REPORTS HIGHLIGHTS OF WEEK 20-2013
01. Interest Rates
1
Positive View
 
02. Growth
Non Available
 
03. Inflation
3
Positive View
U.S. import prices decline 0.5% in Apri.
04. Employment
1
Negative View
 
05. Real Estate
2
2
Neutral View
 
06. Manufacturing
2
Negative View
The Empire State index fell more than 4 points
07. Consumer
1
Positive View
Consumer Sentiment Index in U.S. Rose to 83.7 in May 2013.
08. Sales & Inventories
3
1
1
Positive View
Sales at U.S. retailers rose slightly in April 2013
09. Business Activity
1
1
Neutral View
 
10. Government
1
Neutral View
 
11. Balance of Payments
1
Negative View
Chinese holdings of U.S. Treasuries are steady
12. Money Supply
1
Neutral View
 
13. Banking System
1
Neutral View
 
REPORTS WEEK 20-2013
10
8
4
Positive View
 
MARKET CORRELATION Positive View Negative View Neutral View RATING MKT CORRELATION HIGHLIGHTS OF WEEK 20 -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 20-2013
10
8
6
Positive View
Week 20, 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 20-2013 ENDING MAY. 17
Reports Commentary

U.S. stocks opened lower on Monday, retreating from record highs, as investors mulled when the Federal Reserve may begin to scale back its $85-billion-a-month bond-buying program. Better-than-expected data on retail-sales growth provided some support.

U.S. stocks rose for the week, setting a few records along the way. It was another week of gains that some say defies logic.

The Dow closed +60.00 points. Economic reality is irrelevant as long as there are central planners out there ready to print up new cash'as QE programs.

Rising home prices are beginning to create a virtuous cycle. With home prices now rising from exceptionally affordable levels, buyers are enticed into the market, both because prices are low, and ironically because home prices are rising.

The U.S. manufacturing sector is also improving because of the dramatic decline in the relative price of natural gas in the U.S.

Debt Ceiling

The Treasury Department on Friday will suspend sales of state and local government Treasury securities until further notice, the first action to avoid hitting the U.S. debt ceiling.

The debt ceiling is expected to be reached on May 18, but the Treasury had been expected to take steps like this one in order to keep paying bills.

Treasury Secretary Jacob Lew said last week that the U.S. will be able to avoid the debt limit until Labor Day. The Congressional Budget Office said Tuesday that the deadline could be as late as November.

Europe

French GDP was negative for the 2nd consecutive quarter. France slips into recession as first-quarter GDP falls 0.2% from fourth quarter

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

  1. European Recession continues.

  2. France slips into recession as first-quarter GDP falls 0.2% from fourth quarter

  3. China growth forecasts being trimmed a notch.

  4. Empire State Mfg -1.43 vs. +3.75 estimate.

  5. Industrial Production -0.5% vs. -0.2% expectation and +0.3% previous reading.

  6. Sales at U.S. retailers rose slightly in April 2013.

  7. April 2013 PPI, producer inflation, was lower than expected.

  8. The Empire State index fell more than 4 points.

  9. Chinese holdings of U.S. Treasuries are steady.
       
    To prepare for this week we have posted the following Blog:    
    U.S. Treasury Budget Biggest Surplus    
         
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