DEFLATION: CONSUMER PRICES FALL 0.4% (Est. -0.3%)
BIG MISS: HOUSING STARTS FALL TO 853k (Est. 970k)
MISS: INITIAL JOBLESS CLAIMS JUMP TO 360k (Est. 330k)
Economic data is so bad today we may get S&P 1700
Housing Starts 853K, Exp. 970K
Claims 360K, Exp.330K. Random()
S&P Downgrades Berkshire From AA+ To AA, Outlook Negative
Obviously with Buffett a major shareholder of Moody’s, the only place where a downgrade of Berkshire could come from was S&P. Moments ago, the rating agency that dared to downgrade the US for which it is being targeted by Eric Holder’s Department of “Justice”, did just that.
On New Criteria, Berkshire Hathaway Inc. Downgraded To ‘AA’, Core Ins. Subs Affirmed At ‘AA+’, Senior Debt Rated ‘AA’
- Under our revised group methodology criteria, we are lowering our counterparty credit rating on BRK to ‘AA’ from ‘AA+’. At the same time, we are affirming our ‘AA+’ counterparty credit and financial strength ratings on BRK’s core operating insurance companies.
- The ratings reflect our view of the group’s excellent business risk profile and very strong financial risk profile based on an extremely strong competitive position and very strong capital and earnings.
- The negative outlook reflects the U.S. sovereign ratings cap and our view that the group’s capital adequacy per our capital adequacy model could deteriorate relative to its risk profile.
We Just Got A Bunch Of Crappy Data
It still remains an open question whether the economy is hitting escape velocity, or whether the sequester and everything else are dragging it back down.
Today we get more evidence that growth is sputtering.
Initial jobless claims jumped from 328,000 to 360,000, a number that was far worse than the 330,000 that economists were expecting.
Housing starts missed big, in part thanks to a huge drop in multi-family. The total sequential drop was 16.5%.
Read more: http://www.businessinsider.com/bad-data-roundup-may-16-2013-5#ixzz2TTOLdqAZ
Gregor Peter‏@L0gg0l2 min
Bonds getting a HUGE bid after the US data miss
Gregor Peter‏@L0gg0l21 min
RT @XHNews: Gold demand in China jumped 20% in Q1 as global demand slid 13%.
Tragic Trifecta: Initial Claims Soar, Housing Starts Plunge, CPI Below Expectations
Census revises all housing data from January 2011
IMF SAYS QE BENEFITS TO BECOME AMBIGUOUS IF GROWTH STAYS WEAK
FED’S FISHER: I’M NOT THE ONLY ONE READY TO WIND DOWN BUYING OF MORTGAGE BONDS – DJ
Philly Fed Misses, Key Indicators Negative Across The Board: Employment Index Lowest Since September 2009
It’s just getting plain stupid out there. Just as stocks were exploding into the green (perhaps on expectations of an epic Philly Fed miss), the Philly Fed did not disappoint, printing at -5.2, down from 1.3, and crushing expectations of an increase to +2.0 (comingbelow the lowest forecast), the biggest miss since February and confirming that the Empire Fed index plunge was not a fluke. Virtually every components in the Philly Fed was red except for Inventories (up to 4.1 from -22.2 in March) and Prices Paid (up to 6.9 from 3.1 in March). Among the plungers, the key New Orders tumbled from -1.0 to -7.9, Shipments crashed from 9.1 to -8.5, Average Workweek slide from -2.1 to -12.4, and the Number of Employees imploded from -6.8 to -8.7, the lowest print since September 2009. And if all of this doesn’t send the Stalingrad & Poor 500 to new historic highs, we don’t know what will. All one can do now is just laugh at this “market.”
Philly Fed employment lowest since September 2009
Philly Fed -5.2, Exp. +2. LOL
Philly Fed will have to be a huge miss for 1700 in the S&P
“Taper Off?” – US Treasuries Are Having Their Best Day In Almost 3 Months