Fri Aug 13 2010 – Weekly Recap & The Week Ahead
1. Consumer confidence fell in early August to the lowest level since October 2008, a month after the collapse of Lehman Bros. sent the economy tumbling into a severe recession and financial crisis, according to the IBD/TIPP Economic Optimism Index out Tuesday
2. The Federal Open Market Committee announced that it would reinvest principal payments from mortgage assets into longer-term Treasurys.
3. States get $26B in aid — Obama signed into law a $26B plan that Democrats said will help cash-strapped state governments preserve the jobs of thousands of teachers, police and firefighters.
4. U.K. growth moderating — The U.K.’s economic recovery is likely to continue at a slower pace than previously expected, said the Bank of England in its quarterly Inflation Report, peaking at a 3% annual pace instead of at 3.6%.
5. China ‘s domestic growth slows — July Industrial production rose to 13.4% in July vs. 13.7 last year; Retail sales also slowed and consumer inflation rose.
6. Retail sales weak — data is yet another indication that the economy has slowed significantly and the recovery could fail if job growth doesn’t pick up. Sales at clothing stores were one of the weakest areas, falling 0.7%.
7. German economy posts stellar growth — Germany’s GDP grew an adjusted 2.2% in the second quarter vs. Q1, marking the strongest growth in 20 years on the back of healthy contributions from exports and investment;
Here is an interesting video from CNBC regarding the manic state of the market.
The week ahead — 2Q earnings season continue & economic data:
1. 8/16 — LOW 2Q;
2. 8/17 — Housing Starts; PPI; HD 2Q; ANF 2Q; TJX 2Q;
3. 8/18 — DE 2Q;
4. 8/19 — Export Sales; HPQ 2Q; CRM 2Q;