EIA, Housing Starts, Building Permits, CPI

In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead and someone else has taken his place.

EIA Inventory Crude +0.2M barrels; Gasoline +1.5M; Distillate +1.2M; Propane +1.71M

Inside the number: Inventories are at all time highs, YOY Crude +15.4M; Gasoline +2.9M; Distillate +8.4M; Propane -4.522M
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June Housing Starts -5.3% @ 1.85M vs prior 1.95M

Inside the number: YOY Starts -11%, New permits -15%, with markets in Virginia, DC, Mass, Florida and Texas heading off the deep end, Arizona, Nevada & California will be following.
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June CPI +0.2% vs prior +0.4%; Core +0.3% vs prior +0.3%

Inside the number: 4th straight +0.3% rise in the core. Shelter costs are 30% of the CPI. Residential rents +0.4%, owners' equivalent rent +0.4%.

But its not just housing driving up inflation, the gains in inflation are broad-based due to energy cost passthrough in the supply chain.

Witness the Cleveland FED median CPI +0.4% for the 2nd straight month. Median CPI does not exclude food and energy as the Core does.
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Keep it tween da ditches, we take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong, this is The Nattering Naybob and your NOT!!!

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