Economic Reports 01/17/07
Summary: Tech warnings begin in mount. PPI & Core up again on rising energy & food costs. Industrial Production & Capacity Utilization up.
Net Foreign Purchases decreasing while Foreign inflows increased. Narrowing interest rate differentials could reduce the relative attractiveness of U.S. assets, putting downward pressure on the dollar.
Crude falling early 2% to the $50 level, then rebounding on short covering $51.32, gold rising $633.50, $ & bonds falling 10yr 4.77.
JP Morgan Chase beat the number, McDonalds earnings will exceed forecasts, PnG upgraded.
Meanwhile in Tech, Symantec down 14% on lowered forward guidance. Intel punished 5% after reporting a drop in earnings (profits -39%) and stating that this year's gross margins would narrow.
Later today, Apple reports, Fed Beige Book & EIA Inventories. Tomorrow: CPI, Housing Starts, Building Permits, Initial Claims, Leading Indicators, Philly Fed & CRITICAL Bank Of Japan Rate Announcement.
PPI Dec +0.9% vs prior +2% Full Report
Inside the number: Core PPI Dec +0.2% vs prior +1.3%. Energy +2.5%, Gasoline +7.1%.
Wholesale food +1.7%, biggest rise in 3 years, fresh fruit prices +26.3%, the most in six years, fresh vegetable prices +21.7%.
Finished goods +1.2%, Intermediate goods +0.5%, Crude goods +2.9%. Core intermediate goods -0.1%, +4.7% in the past 12 months.
Core intermediate PPI +4.7% YOY, coming down from +8.3% YOY in August, a 24-year high.
Industrial Production Dec +0.4% vs revised down prior -0.1% Full Report
Inside the number: November Production revised down from +0.2% to -0.1%. Over 12 months production +3%. Capacity Utilization Dec 81.8% vs prior revised down from 81.8% to 81.6%.
Manufacturing +0.7%, the first increase since August. Reflecting one of the warmest Decembers on record, utility output -2.6%, mining +0.8%.
High-technology output +2.2%, up 27.3% in the past year. Business equipment production +1.6%, up 10.3% in the past year.
TIC Net Foreign Purchases Nov. $68.4B vs prior $82.3B Full Report
Inside the number: Monthly capital flows rising to $74.9B vs prior $60.4B. Private investors increased purchases to $65.8B and official institutions decreased to $9.1B.
Private Investors bought $26B in Treasury bonds and notes vs prior $8B. Central banks bought far fewer Treasury bonds and notes $1B vs prior $18.5B.
Japan's U.S. Treasury holdings fell to $637.4B vs prior $639.6B, China's holding rising to $346.5B vs prior $345B.
U.S. investors purchases of long term foreign securities $39.1B vs prior $18.9B.
Net Foreign Purchases decreasing while Foreign inflows increased. Narrowing interest rate differentials could reduce the relative attractiveness of U.S. assets, putting downward pressure on the dollar.
Crude falling early 2% to the $50 level, then rebounding on short covering $51.32, gold rising $633.50, $ & bonds falling 10yr 4.77.
JP Morgan Chase beat the number, McDonalds earnings will exceed forecasts, PnG upgraded.
Meanwhile in Tech, Symantec down 14% on lowered forward guidance. Intel punished 5% after reporting a drop in earnings (profits -39%) and stating that this year's gross margins would narrow.
Later today, Apple reports, Fed Beige Book & EIA Inventories. Tomorrow: CPI, Housing Starts, Building Permits, Initial Claims, Leading Indicators, Philly Fed & CRITICAL Bank Of Japan Rate Announcement.
PPI Dec +0.9% vs prior +2% Full Report
Inside the number: Core PPI Dec +0.2% vs prior +1.3%. Energy +2.5%, Gasoline +7.1%.
Wholesale food +1.7%, biggest rise in 3 years, fresh fruit prices +26.3%, the most in six years, fresh vegetable prices +21.7%.
Finished goods +1.2%, Intermediate goods +0.5%, Crude goods +2.9%. Core intermediate goods -0.1%, +4.7% in the past 12 months.
Core intermediate PPI +4.7% YOY, coming down from +8.3% YOY in August, a 24-year high.
Industrial Production Dec +0.4% vs revised down prior -0.1% Full Report
Inside the number: November Production revised down from +0.2% to -0.1%. Over 12 months production +3%. Capacity Utilization Dec 81.8% vs prior revised down from 81.8% to 81.6%.
Manufacturing +0.7%, the first increase since August. Reflecting one of the warmest Decembers on record, utility output -2.6%, mining +0.8%.
High-technology output +2.2%, up 27.3% in the past year. Business equipment production +1.6%, up 10.3% in the past year.
TIC Net Foreign Purchases Nov. $68.4B vs prior $82.3B Full Report
Inside the number: Monthly capital flows rising to $74.9B vs prior $60.4B. Private investors increased purchases to $65.8B and official institutions decreased to $9.1B.
Private Investors bought $26B in Treasury bonds and notes vs prior $8B. Central banks bought far fewer Treasury bonds and notes $1B vs prior $18.5B.
Japan's U.S. Treasury holdings fell to $637.4B vs prior $639.6B, China's holding rising to $346.5B vs prior $345B.
U.S. investors purchases of long term foreign securities $39.1B vs prior $18.9B.
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