As the old saying goes, “you can put lipstick on a pig but it’s still a pig,” and this week’s economic and financial data have been truly swine-like.
Here are the “boar ish” details regarding global stock markets and ETFs:
Japan has reentered recession, its economy plunging for the First Quarter at a -3.7% annualized rate, twice as deeply as expected.
May Empire Manufacturing Index: 11.9 vs 21.7 previously
April Housing Starts: 523,000 versus 585,000 previously
April Building Permits: 551,000 versus 574,000 previously
April Industrial Production: 0.0% versus 0.7% previously
April Existing Home Sales: 5.05 million versus 5.09 previously, a -13% year over year decline
May Philadelphia Fed: 3.9 versus 18.5 previously, down from 43 just two months ago which was the highest reading since 1984.
April Leading Indicators: -0.3 versus -0.7, the first decline since last June
The only glimmer of positive data was in Initial Unemployment Claims which declined to 409,000 versus 438,000 last week, but still above the psychologically and statistically significant 400,000 level.
Bad…bad….bad…..it has definitely been a “Miss Piggy” kind of week as, overall, the economic numbers have been a debacle, particularly the Philly Fed which came in at 3.9 compared to a consensus 20.5 and last month’s 18.5.
Small wonder they call economics the “dismal science.”
At Wall Street Sector Selector, we continue to expect lower prices ahead in global stock markets and maintain our inverse ETF and put option positions.
Daily Moves for Major ETFs:
Dow Jones Indus trials: (Nazca: DIA) +0.37%
Russell 2000: (Nazca: IWM) +0.22%
NASDAQ 100: (NASDAQ: QQQ) +0.29%
S&P 500 Index: (NYSEArca: SPY) +0.24%
MS CI Emerging Markets:(NYSEArca: EEM) -0.65%
MS CI China (NYSEArca: FXI) -0.05%
Gold (NYSEArca: GLD) +0.03%