Good morning, its Friday May 13th, the 133rd day of 2005.
The increase in Business Inventories came in slightly lower than concensus and at the low end of the expected range at 0.4%. Import prices for April came in higher than expected, at the top end of the expected range at 0.8%.
“Excluding petroleum it is only up 4 tenths (of a percentage point), so really it’s the same old-same old story. Petroleum and industrial supplies seem to have been the main culprits,” said Patrick Fearon, senior economist at A.G. Edwards & Sons in St. Louis.
One indicator suggests a little slowing, one suggests a little inflation. Markets will probably ignore both and wait for the PPI and CPI reports to be released next week.
Before the bell crude is trading up somewhat:
“Clearly, North American inventories have been building up and that’s something people have been focusing on, but the overall situation remains that the market is extremely tight,” said Ian Henderson of JP Morgan Fleming. “I, for choice, believe that any period of weakness is probably a buying rather than a selling opportunity.”2
The USD continues its rally following the technical breakouts against many key currencies; no doubt Gold will be hit anew today.
US Market Calendar
- 8:30 am: Trade Price Indices – April1
- 8:30 am: Business Inventories – March
- 9:45 am: University of Michigan Consumer Sentiment Index – May Preliminary
Canadian Market Calendar
- 8:30 am: Manufacturing Shipments & Orders – Mar.
Earnings and the Federal Reserve
For earnings highlights, please see today's WSJ Earnings Calendar.
For a list of upcoming speeches, congressional testimony, Federal Open Market Committee material, and statistical releases, please visit the What's Next page of The Federal Reserve Board website. Recently released Federal Reserve Board material, including market moving FOMC decisions and speeches by members, will be found on their What's New page.
1 Import prices rise by twice forecast
2 Oil up, funds look beyond supply glut
05.05.13 09:26 #