Morning Report

Posted on November 16, 2012 by ScottC

(posted for Brent)

Vital Statistics:

Last Change Percent
S&P Futures 1354.8 3.5 0.26%
Eurostoxx Index 2457.6 -4.1 -0.17%
Oil (WTI) 86.49 1.0 1.22%
LIBOR 0.312 0.001 0.16%
US Dollar Index (DXY) 81.19 0.114 0.14%
10 Year Govt Bond Yield 1.59% 0.00%
RPX Composite Real Estate Index 191.4 -0.4

Markets are slightly higher this morning on no real news. The Gap and Foot Locker reported better than expected earnings. Industrial Production and Capacity Utilization both fell and were below expectations. Those are warning flags. Bonds are down a few points and MBS are up.

The WSJ is reporting that the White House is in talks to replace the sequester with a smaller package of spending cuts and tax increases. They are looking at cutting spending by $100 billion next year. This would take the pressure off and allow a more comprehensive deal in mid 2013.

FHA is almost broke. They are hoping that an improving housing market and pending changes in its reserve fund will help it weather the storm without needing additional taxpayer funds. I wouldn’t rule out an increase in the G-fee at some point.

Bye-bye Twinkies, Ding Dongs and Ho Ho’s. Hostess has decided to liquidate instead of re-organize after a strike crippled operations. 18,500 workers will be let go.

The banking system continues to hemmorage jobs. Over 160,000 in the last two years, and the fire / hire ratio is around 2.0. I keep thinking that Wall Street tends to over-hire and over-fire, but they have been over-firing for years now. As we have noted, there are capacity constraints. Anecdotally, I have heard of one large bank that is refusing to take new customers on the trading side.

Filed under: Morning Report |

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6 Responses

  1. Brent Nyitray's avatar
    Brent Nyitray, on November 16, 2012 at 9:07 am said:

    Thanks, Scott

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  2. jnc4p's avatar
    jnc4p, on November 16, 2012 at 9:39 am said:

    Thanks Scott.

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  3. Brent Nyitray's avatar
    Brent Nyitray, on November 16, 2012 at 9:44 am said:

    Boehner “Constructive” conversation with obama. Will accept revenues as long as contains spending cuts.

    S&P rallying

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  4. jnc4p's avatar
    jnc4p, on November 16, 2012 at 12:12 pm said:

    Ron Paul’s farewell speech (VIDEO)
    Posted by Chris Cillizza on November 14, 2012 at 6:12 pm

    http://www.washingtonpost.com/blogs/the-fix/wp/2012/11/14/ron-pauls-farewell-speech-video/?tid=pm_pop

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  5. Michigoose's avatar
    Michigoose, on November 16, 2012 at 6:37 pm said:

    OT (but it’s evening now):

    ashot–just saw this from a Michigan newspaper. The state legislature is turning into quite the teapot with a tempest in it!

    You’ve heard all the usual clamor for bipartisan cooperation at the national level amid this postelection euphoria. There are so many olive branches on the Potomac River that you can’t see the water.

    In Lansing, there are no olive branches in sight. In fact, the brickbats are over there in the corner.

    The Republicans are hacked that House Democrats went after House GOP Speaker Jase Bolger and came within a sliver of knocking him off.

    The Republicans are hacked at organized labor that it put Proposal 2 on the ballot and forced a nasty confrontation between unions and business and that has spawned a boomlet for Right to Work legislation, which is sure to anger labor.

    And the incoming House Democratic leader, with a whopping eight months of legislative experience under his belt, is already warning the GOP not to go there. Rep. Tim Greimel, D-Oakland County, fires a warning shot: If there is any chance of bipartisan cooperation, the Republicans will blow it to smithereens by pushing Right to Work.

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  6. ashot's avatar
    ashot, on November 16, 2012 at 8:02 pm said:

    Thanks Michi! Michigan politics are such a disaster. It’s been highly contentious the last few years.

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