Economic Reports 09/28/06: EIA, Initial Claims, Final Q2 GDP
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.
2 year note auction yield 4.66%, bid to cover 2.84, indirect bidders 36.6%.
EIA Inventory: Crude -100K; Gasoline +6.3M Barrels; Distillates +2.6M; Propane +1.640M.
Initial Claims: -6K @ 316K, continuing claims -8K @ 2.44M
Final Q2 GDP +2.6% vs Q1 5.6% Full Report
Revised down from 2.9% due to worsening trade balance and lower inventory investment.
Inside the number: Despite reports to the contrary, stagflation is still raging witnessed by the Chain Deflator +2.7% vs Q1 +2.8%.
Note the largest decline in 11 years in residential investment -11.1%, resulting in a significant decrease in consumer spending +2.6% vs Q1 +4.8%.
The Nattering One expects this to worsen as the housing sector contracts and the refi ATM spigot gets turned off.
Slower spending also resulted in corporate profit shrinking +1.4% vs Q1 +3.2%. Lowered guidance, lower profits equals lower valuations??
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!!!
2 year note auction yield 4.66%, bid to cover 2.84, indirect bidders 36.6%.
EIA Inventory: Crude -100K; Gasoline +6.3M Barrels; Distillates +2.6M; Propane +1.640M.
Initial Claims: -6K @ 316K, continuing claims -8K @ 2.44M
Final Q2 GDP +2.6% vs Q1 5.6% Full Report
Revised down from 2.9% due to worsening trade balance and lower inventory investment.
Inside the number: Despite reports to the contrary, stagflation is still raging witnessed by the Chain Deflator +2.7% vs Q1 +2.8%.
Note the largest decline in 11 years in residential investment -11.1%, resulting in a significant decrease in consumer spending +2.6% vs Q1 +4.8%.
The Nattering One expects this to worsen as the housing sector contracts and the refi ATM spigot gets turned off.
Slower spending also resulted in corporate profit shrinking +1.4% vs Q1 +3.2%. Lowered guidance, lower profits equals lower valuations??
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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