NAHB Housing; NY Empire; PPI; Foreign Capital
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.
Summary: The data does not look good. Further cooling in housing and manufacturing, leading to a slowdown in the economy and layoffs.
Intermediate goods PPI inflation pressure due to energy pass through inflation, leading to stagflation.
Foreign central banks buying less and selling more of our bonds causing downward pressure on the dollar, this devaluation will lead to further price inflation which will thwart the Fed's efforts.
August NAHB Housing Index -7 @ 32 Full Report
Inside the number: SFR sales -7 to 36, sales expectations -6 to 40, traffic of prospective buyers -6 to 21. Northeast -3 to 34; Midwest -5 to 15; South -9 to 41 and West -10 to 42.
The mustard is off the hot dog as the index of homebuilder confidence hit its lowest level since Feb 1991.
July NY Empire Index DOWN 10.3 vs prior 16.6 Full Report
Inside the number: new orders UP 19.1 vs prior 11.3; shipments UP 14.8 vs prior 12.3; unfilled orders DOWN -7.4 vs prior 4.6; prices paid DOWN 44.6 vs prior 50.5.
The report gives mixed signals with new orders & shipments increasing while backorders & prices paid declined.
July PPI +0.1% vs prior +0.5% Full Report
Inside the number: CORE PPI -0.3% vs prior +0.2% as wholesale prices fell. However, ex auto CORE PPI flat and key core intermediate PPI kept rising.
Intermediate goods destined for further processing before final sale, prices +0.5% in July. Core intermediate goods prices UP 7.9% in the last year, the highest in 17 months.
June Foreign Capital Flows +$75.1B vs prior +$63.6B Full Report
Inside the number: Foreign central banks unloaded Treasurys for the second consecutive month, selling $4.4B. Private investors made up the difference buying $31.4B vs prior $21.8B.
Japan, the world's largest holder of U.S. Treasurys actually sold Treasurys for the fourth month in six. This diversification of reserves will cause eventual downward pressure on the dollar, the resulting devaluation with cause inflation to rise.
Summary: The data does not look good. Further cooling in housing and manufacturing, leading to a slowdown in the economy and layoffs.
Intermediate goods PPI inflation pressure due to energy pass through inflation, leading to stagflation.
Foreign central banks buying less and selling more of our bonds causing downward pressure on the dollar, this devaluation will lead to further price inflation which will thwart the Fed's efforts.
August NAHB Housing Index -7 @ 32 Full Report
Inside the number: SFR sales -7 to 36, sales expectations -6 to 40, traffic of prospective buyers -6 to 21. Northeast -3 to 34; Midwest -5 to 15; South -9 to 41 and West -10 to 42.
The mustard is off the hot dog as the index of homebuilder confidence hit its lowest level since Feb 1991.
July NY Empire Index DOWN 10.3 vs prior 16.6 Full Report
Inside the number: new orders UP 19.1 vs prior 11.3; shipments UP 14.8 vs prior 12.3; unfilled orders DOWN -7.4 vs prior 4.6; prices paid DOWN 44.6 vs prior 50.5.
The report gives mixed signals with new orders & shipments increasing while backorders & prices paid declined.
July PPI +0.1% vs prior +0.5% Full Report
Inside the number: CORE PPI -0.3% vs prior +0.2% as wholesale prices fell. However, ex auto CORE PPI flat and key core intermediate PPI kept rising.
Intermediate goods destined for further processing before final sale, prices +0.5% in July. Core intermediate goods prices UP 7.9% in the last year, the highest in 17 months.
June Foreign Capital Flows +$75.1B vs prior +$63.6B Full Report
Inside the number: Foreign central banks unloaded Treasurys for the second consecutive month, selling $4.4B. Private investors made up the difference buying $31.4B vs prior $21.8B.
Japan, the world's largest holder of U.S. Treasurys actually sold Treasurys for the fourth month in six. This diversification of reserves will cause eventual downward pressure on the dollar, the resulting devaluation with cause inflation to rise.
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