Morning Report – The Avon Lady gets a fake suitor 5/15/15

Markets are flattish after some disappointing industrial data. Bonds and MBS are following European bonds higher.

Industrial Production fell .3% in April, the same as March. This is the fifth consecutive month of negative readings. On a year-over-year basis, industrial production was up 1.9%. While mining and energy extraction were down as expected, other categories like consumer goods, business equipment etc were down as well. Manufacturing Production was flat, and capacity utilization fell. The European QE-driven dollar rally that began about a year ago is probably a big reason for the continued weakness here. Here is an interesting take on the big bond market sell-off.

Consumer confidence slipped in May, according to the University of Michigan Consumer Confidence Survey. Consumers are coming to the realization that we aren’t getting the expected V-shaped recovery from the weak first quarter.

The Avon Lady had a fake suitor yesterday, which drove the stock price up 20%. Someone managed to file a fake press release on EDGAR (The SEC’s public documents website) saying the company was being bought by an investment company called PTG Capital Partners (which doesn’t exist). The fake bid drove the stock from $6.60 a share to $8.00 a share. Amazing someone was able to file a fake document on EDGAR.

I will be at the MBA Secondary Conference in NYC next week. If anyone is around and wants to meet, please let me know.

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