
Big day for data as Q3 GDP was revised downward again, initial claims fell, The Chicago National Activity Index fell again, housing prices reversed course and leading indicators increased and consumer sentiment improved.
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Big day for data as Q3 GDP was revised downward again, initial claims fell, The Chicago National Activity Index fell again, housing prices reversed course and leading indicators increased and consumer sentiment improved.
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Leading overall growth of U.S. exports, Louisiana's year-to-date 2011 worldwide merchandise exports increased by 45% in value over the same period in 2010, according to a report issued today by the World Trade Center of New Orleans. Through the third quarter, Louisiana exports totaled $39.8 billion, compared to $27.4 billion the previous year.
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The U.S. trade deficit shrank in October with both imports and exports declining. The consumer sentiment index–while still at fairly depressed levels–rose.
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Initial Claims were down, Consumer Comfort steady and Wholesale Inventories jumped.
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The only economic release today is that the Mortgage Bankers Association reports that mortgage applications bounced back after Thanksgiving, up 12.8% last week. Purchases were up 8.3%, and refinance applications rose 15.3%.
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Factory orders fell in October and the non-manufacturing ISM shows some slowing in the service sector.
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It was a big day for data, and it was mixed.
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Today we look at a decline in jobless claims, an increase in housing starts, improving consumer comfort and E-Commerce with only the Philly Fed disappointing.
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From Naufall Sanaullah of Shadow Capitalism we get a nice overview of the world economy and markets.

It’s all about employment today. The Monster employment index rose three points to 151 as online recruiting increased in October. What everyone is really interested in today, though, is the monthly Employment Situation.
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Today’s economic statistical releases:
We await the releases of vehicle sales, which will come from the manufacturers throughout the day.
Increases in employment and production pushed the ISM Manufacturing Index up slightly to 51.6.
Construction spending rose by 1.4% in August, led by a 3.1% increase in public sector construction.
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Growth remained low, and the three-month moving average declined, though still above recessionary levels. Doug Short has a very good discussion of this indicator here.

Traffic is still expanding, but the rate of increase is still slowing. This jibes with a weak, but still growing economy. The Association of American Railroads (AAR) today reported gains in weekly rail traffic, with U.S. railroads originating 294,310 carloads for the week ending June 18, 2011, up 3.3 percent compared with the same...
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Durable goods cam in better than expected, though it may only be due to a temporary bump: Miller Tabak’s Peter Boockvar notes that “the Govt stimulus package has a depreciation tax credit that expires by year end — so companies have to now use it or lose it. That could have had an impact...
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While spending increased in March by 1.8% over a year ago, adjusted for inflation it was way down. The only reason sales were positive was gasoline, though food sales were positive. Even there, that is mostly due to inflation and rising prices of food and staples. Download article as PDF
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Personally I think we have been negative since November. Given the large positive number in the third quarter, the barely above break even number in the fourth quarter virtually guarantees that the economy went negative sometime in November and December. However, if we are not, it is highly likely coming. Here is a graphic...
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We should start out with some humor: A robber in a ski mask blamed the bank for what he was about to do, The Associated Press reported Feb. 22. “You took my house, now I’m going to take your money!” the assailant hollered. Talk about a reverse mortgage! The FBI plans to review the...
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Bad news for the monolines. FGIC just got downgraded today to AA. That pretty much puts them out of the business of insuring municipal bonds. NYS Commissioner of Insurance has suggested splitting the Muni bond business from the rest of the insurers. FGIC seems to now think that isn’t a bad idea. Of course,...
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Click image to enlarge. Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer. Download article as PDF
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The GDP numbers came out yesterday. For a breakdown, including the inflation component, go here. For the announcement from the BEA go here. The Fed also cut rates by 50bps. Here is the Journal’s story. Reactions: Barry Rithotlz- Q4 GDP: El Stinko! • Consumption slowed to 2% from 2.8% in Q3; I suspect that...
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