What We Read Today 22 August 2013
Econintersect: Click Read more >> below graphic to see today's list.
The top of today's reading list
discusses the dominance in the modern genome of DNA from a few powerful
men in history ........ and the last article describes a Shanghai
"flash rally" and how it may impact future trading in Chinese stocks.
Averages Close Higher After NASDAQ Reopening
Closing Market Commentary For 08-22-2013
NASDAQ was off line for 3 hours this
afternoon and didn't effect the markets any as they continued to show
positive movements. After the NASDAQ was reinstated the SP500 moved up
to make new highs for the day. AAPL fell to 498 just before the closing
of NASDAQ but bounced back to 502 and then settled around the 500 area.
AAPL finally ended the session at 503.33.
By 4 pm the markets had slacked off the
session highs on moderate volume, but the BTFDers were still trading
right up to the closing bell leaving some investors questioning the
recent market bullishness.
Rail Week Ending 17 August 2013: Continued Improvement in Growth Rate
Econintersect: Week 33 of 2013 ending 17 August shows same week total
rail traffic (from same week one year ago) was stronger according to
data released by the Association of American Railroads (AAR). Railcar
count is up, and intermodal count is up.
- Weekly overall data is up, and up even stronger ignoring coal and grain;
Markets Slide Mostly Sideways, FOMC Could Crash The Party
Midday Market Commentary For 08-22-2013
Summertime blues seem to have taken hold as the averages melt ever so slowly upwards on low to moderate volume.
By noon investors were waiting for news
from Jackson Hole, but I suspect it will hold nothing of interest as the
Feds are trying to keep a sudden rush to the exits in check.
Appears we have seen the highs for the
day and baring any market shaking news the averages should lose some of
their appeal and start drifting downwards.
Kansas City Fed: Manufacturing Activity Stronger Growth in August 2013
All 3 regional surveys in August show expansion.
July 2013 Coincident Indicator Review: Philly Fed USA Coincident Index Continues to Show Economic Growth
A comparison of US
Coincident Index, Aruoba-Diebold-Scotti business conditions index,
Conference Board's Coincident Index, ECRI's USCI (U.S. Coincident
Index), and Chicago Fed National Activity Index (CFNAI) coincident
indicators follows.
How Metadata is Mega-dangerous
When
the story broke about the NSA collecting and analyzing all American
citizens' digital lives, President Obama and his national security
officials rushed to explain they were only collecting metadata which in
reality is 'mega-dangerous.
Markets Open Up Melt Higher On Moderate Volume
Opening Market Commentary For 08-22-2013
Premarkets were up this morning and
remained on the positive side when the unemployment figures rose to
336,000 and continuing claims rose to 2999K. There was also a unusual
high green spike of volume right after the announcement.
The markets opened higher, but without
gaping like it has done in the past several sessions. Slowly melting up
where the DOW was up +0.25% and the $RUT was up +0.74% in the first 15
minutes. Volume dropped off to anemic levels prior to the 10 am
announcement of US Leading Indicators as investors waited for the other
shoe to drop.
July 2013 Leading Economic Index Growth Slightly Above Expectations
Written by Steven Hansen
The Conference Board Leading Economic Index (LEI) for the U.S. improved
in July to 96.0 (2004 = 100). The index value has been slowly trending
up.
Read more >>
A Word from This Newsletter's Sponsor
The Next Industry to Crumble...
Imagine owning Amazon.com (up over an insane 4,000% since 2001) when
Internet sales rendered big-box retailers obsolete. Now an industry 99% of
us use daily is set to implode... And 3 established companies are perfectly
positioned to take advantage of this game-changing economic shift.
Household Income Down by 4.4% Overall Post Recession
from Sentier Research
Based on new estimates derived from the
monthly Current Population Survey (CPS), real median annual household
income, while recovering somewhat from the low-point reached in August
2011, has fallen by 4.4 percent since the 'economic recovery' began in
June 2009.
17 August 2013 Unemployment Claims 4 Week Average Improvement Continues
Blue Line 4 Week Average
The market was expecting 337,000 to
345,000 vs the 336,000 reported. The more important (because of the
volatility in the weekly reported claims and seasonality errors in
adjusting the data) 4 week moving average
improved, moving from 332,000 (reported last week) to 330,500.
Read more >>
Stratfor: Unprecedented Demographic Problem Takes Shape in China
by Stratfor
Chinese society is on the verge of a structural transformation even more
profound than the long and painful project of economic rebalancing,
which the Communist Party is anxiously beginning to undertake.
Read more >>
China: PMI Surges
Econintersect:
The "Flash" PMI (Purchasing mangers' Index) for China from HSBC has
surged in August from the lowest reading in 11 months in July (47.7) to
50.1. By rising above 50 the indicator has risen above the demarcation
line between contraction and expansion. The improving reading follows
moves by the Chinese government to shore up the country's economy.
Democratic Imperialism
Written by Frank Li
In a recent post (The Coming Demise of America), I specifically called out the Republican Party to be anti-war by denouncing "democratic imperialism, as perpetuated by the likes of John McCain and Lindsey Graham," in order to have any chance in the 2016 presidential election and beyond.
What, then, is democratic imperialism?
Click on picture to enlarge.
Europe: Revival for Economy and Markets
Investing Daily Article of the Week
by Philip Springer, Investing Daily
The euro zone is finally showing evidence
of economic improvement. The overall economy of the 17 nations that
share the euro currency grew by an annual rate of 1.2 percent in the
second quarter compared with a year ago. This breaks a losing streak of
six straight quarterly declines.
Can New Consoles Revive the Ailing Gaming Industry?
by Felix Richter, Statista.com
Yesterday Sony announced the November 15
release date of its new gaming console, the PlayStation 4. Sony made the
announcement at a press conference at the world's largest video game
expo Gamescom, which annually draws hundreds of thousands of gamers to
Cologne, Germany.
Shadow Labor Supply: Implications for the Unemployment Rate
by Troy Davig and Jose Mustre-del-Rio - The Macro Bulletin, Federal Reserve Bank of Kansas City
The number of individuals expressing
interest in work, but who are not looking for a job, has swelled in the
years since the Great Recession. While a rapid return of this group into
the labor force is possible, their flow rate back into unemployment has
been declining and, therefore, their potential to slow or reverse the
decline in the unemployment rate appears modest.
Infographic of the Day: Nachos 101
Who
doesn't love a heaping pile of hot nachos? This delicious Mexican snack
has been lovingly embraced by Americans since the 1940s. Here are some
little-known facts about this tasty dish.
Tough Choices For Hollande This Autumn
Written by Hilary Barnes
With Germany's second quarter GDP up by
0.7% and France's by 0.5% compared with the first quarter, the
performance of the two largest Eurozone countries lifted the Eurozone
GDP increase to 0.3%. A second similarity between the two is that if one
takes the first half year, there is almost no increase from either the
first or second halves of 2012 to the first half of this year.
Of course the second quarter recovery is
encouraging, but, as many commentators have said, it must be confirmed
in future quarters before anyone dances for joy.
Consumers Vulnerable as Oil Earnings Flourish
Written by Mitchell Clark, Profit Confidential
If there is one constant in capital markets it's that theoil business continues to be a good business to be in.
West Texas Intermediate (WTI) oil over $100.00 a barrel is nicely profitable. Natural gas and natural gas liquids (NGLs) could be higher, but according to the numbers, big oil is doing great.
Anadarko Petroleum Corporation (APC) is one of the largest independent oil and natural gas companies in the world with 2.56 billion barrels of oil equivalent (BOE) in proven reserves as of the end of 2012.
There are Good Reasons Why Interest Rates Won't Rise
John O'Donnell's Chart of The Week
Written by John O'Donnell, Online Trading Academy
With a review of the history of major
financial panics (U.S. 1873 and 1929, as well as Japan 1989) the current
concern about rapidly rising interest rates seems to be misplaced. If
past patterns are to be repeated the period of declining interest rates
following the financial panic of 2008 has just begun.
Click through Read more >> to view video explaining this week's chart.
More Americans Than Ever Want an Outright Smoking Ban
by Felix Richter, Statista.com
According to a Gallup poll, more
Americans than ever want an outright ban on smoking. Even though
supports is relatively low, it has been steadily improving since 2007
when just 12 percent of people wanted smoking banned everywhere in the
United States.
Today, this has risen to 22 percent. Back in 1991, the portion of
Americans supporting an outright smoking ban was just 14 percent - this
number fell to its lowest point in 1994 - a mere 11 percent. However, in
the time since, Americans have become more aware of smoking-related
diseases, resulting in more support for a ban everywhere in the country.
