The CML Close - Stocks up, oil down, China has alarming slowdown, NY manufacturing data was second worst ever - 08-15-2022
Markets
Stocks rose even as alarmingly bad economic data from China was revealed.
Business activity declined sharply in NY with it's second largest monthly drop ever and home builder sentiment came in well below estimates.
| • SPX | 4,297.14 | +16.99 | (+0.40%) |
| • NASD | 13,128.05 | +80.87 | (+0.62%) |
| • DJIA | 33,912.44 | +151.39 | (+0.45%) |
| • R2K | 2,021.35 | +4.73 | (+0.23%) |
| • VIX | 19.95 | +0.42 | (+2.15%) |
| • Oil | 87.85 | -4.24 | (-4.60%) |
• Wells Fargo is retreating from its mortgage business.
• There is a multi-year high in Russell 2000 futures short positions.
• China's economy shows 'alarming' slowdown.
• Home builder sentiment is worse than expected.
• New York's freshest manufacturing data may be the canary in the coal mine.
Headlines of the Day
Stocks Rises Even as Global Data Are Weak
Stock indexes recovered their morning losses on Monday to finish modestly in the green, extending last week’s rally. Investors shook off weak economic data from both sides of the Pacific.
U.S. freight shipping rates have likely peaked, according to new Cass Freight Index data, in another sign that inflation is easing
U.S. freight rates increased 28% year over year, but declined nearly 2% month over month in July.
China Shocks With Rate Cut as Data Show ‘Alarming’ Slowdown
Central bank surprises by cutting key interest rates. Retail, industrial output, investment data miss estimates.
Wells Fargo Plans Major Retreat From Mortgage Business It Long Dominated
Scandals spur a debate among new leaders at bank that once set records.
China Factory Orders Drop in Ominous Sign for Global Outlook
Demand for tents to zippers drops as inflation hurts consumers. Covid Zero ructions mean China’s economy faces uncertainties. Youth unemployment rate hits 20%.
Economic Data Results for 8-15-2022
NY Empire State Manufacturing Index AUG
The New York Empire State Manufacturing Index sank to -31.3 in August of 2022, the lowest reading since May of 2020 and the second largest monthly decline in the index on record (11.1 in July). Business activity declined sharply in the New York State, as new orders (-29.6 vs +6.2) and shipments (-24.1 vs 25.3) plunged, and unfilled orders declined further (-12.7 vs -5.2).
NAHB Housing Market Index AUG
The NAHB housing market index in the US extended declines for an eighth straight month to 49 in August of 2022, the lowest reading since May of 2020 and well below market forecasts of 55.
Economic Data Due Tomorrow on 8-16-2022
Building Permits JUL
Housing Starts JUL
United States Industrial Production
United States Manufacturing Production
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