- Germany’s business confidence data came in better than expected.
- U.S. Durable Orders grew 3.3% in April, higher than expectations of 1.6% growth.
May 242013
May 232013
- Stocks around the world fell as Japan market crashed 7.3% after having risen around 50% YTD. Although the main catalyst seems to be weak Chinese manufacturing data, it might also be attributed to some profit taking after a spectacular run of 50% gains this year.
- China’s preliminary PMI for May was 49.6, which is in contraction category. It came down from April’s reading of 50.4, and also was below expectations of 50.4.
- Euro-zone’s May PMI came in slightly better than expectation, but was still in contraction stage with a reading of 47.5
- US stocks pulled back majority of their early losses due to some positive data – Initial jobless claims were 340K, better than expectations of 345K; US Flash PMI came in at 51.9, better than expectations of 51.2; New home sales rose 2.3% to 454K, better than expected number of 425K.
May 222013
- Stocks started strong but ended sharply down as FOMC minutes revealed that some Fed officials want to start QE tapering pretty soon.
- Canada retail sales were flat in March, slightly lower than expectations, and below 0.7% increase in February.
- Existing home sales in the US rose 0.6%, and were at the highest level inmore than three years. The data was largely on expected lines.
May 212013
S&P 500 and U.S. stocks got some lift from a couple of Fed official’s remarks which were supportive of continued easing.
May 202013
Not much economic data released today, although there were some comments from finance and economic officials in Japan and US.
May 172013
- U.S. consumer sentiment index rose to 83.7 vs. expectations of 78.5. The previous month number was 76.4. The latest reading is highest since July 2007.
- Index of U.S. leading indicators rose 0.6%, higher than expectations of 0.3% increase.
May 162013
- U.S. initial jobless claims rose unexpectedly by 32,000 to 360,000 last week. Consensus expectations were 330,000.
- Philadelphia Fed Index went below zero to -5.2, vs. expectations of 2.5
- Housing Starts were 853K, below expectations of 970K. But on the bright side Building Permits were 1071K, higher than expectations of 950K.
- The major good news was that Japanese GDP grew at 3.5% annualized growth rate, higher than expected growth of 2.7%.
- On inflation front, US CPI declined -0.4%, vs. expectations of -0.2% decline.
May 152013
Negative Data:
- GDP for the 17-nation Eurozone dropped 0.2% in Q1, worse than expectations of 0.1% decline. This was the sixth consecutive quarter of recession.
- US Industrial Production declined -0.5%, steeper than expectations of -0.2% decline. This was the worst decline in last eight months.
- Empire State Manufacturing Index unexpectedly dropped to negative territory, coming in at -1.4. Economists were expecting a reading of 3.5.
- Canadian manufacturing sales fell to -0.30%, from 2.80% in the preceding month. This was lower than the analysts’ expectations of a rise of 1.00%.
Positive Data:
- U.S. wholesale prices fell -0.7% in April, the biggest drop in more than three years, largely because of sharply lower gasoline prices.
- U.S. Home builder confidence increased to 44 from 41 last month, in line with consensus expectations.
- Greek government bonds surged Wednesday, pulling yields to their lowest level in nearly three years, after Fitch Ratings upgraded the country’s debt.
- Brazilian Retail Sales rose higher than expected to 4.5%, vs. expectations of 3.8% growth.
May 142013
Market Value Total Returns as of 04/30/13 (Source: http://www.sectorspdr.com)
So far in 2013, Healthcare, Consumer Staples, and Consumer Discretionary have outperformed other sectors, while Technology and Materials have the worst performance.
| Select Sector SPDR Fund |
One Month | Latest Quarter |
Calendar YTD |
One Year |
Annualized | |||
|---|---|---|---|---|---|---|---|---|
| Three Year |
Five Year |
Ten Year |
Since Inception* |
|||||
| Materials (XLB) | 0.87% | 0.87% | 5.77% | 10.46% | 8.07% | 1.17% | 9.59% | 7.12% |
| Health Care (XLV) | 2.89% | 2.89% | 18.97% | 28.65% | 17.62% | 10.67% | 7.31% | 6.23% |
| Cons Stap (XLP) | 2.99% | 2.99% | 17.94% | 23.47% | 17.38% | 10.97% | 10.48% | 5.32% |
| Cons Disc (XLY) | 3.04% | 3.04% | 15.39% | 21.50% | 18.03% | 13.00% | 9.36% | 6.89% |
| Energy (XLE) | -1.26% | -1.26% | 10.10% | 12.04% | 11.22% | 0.85% | 15.25% | 10.46% |
| Financials (XLF) | 2.75% | 2.75% | 14.34% | 23.45% | 6.61% | -4.77% | -0.01% | 0.85% |
| Industrials (XLI) | -0.74% | -0.74% | 9.74% | 14.47% | 10.69% | 4.01% | 8.99% | 6.11% |
| Technology (XLK) | 1.75% | 1.75% | 6.87% | 5.07% | 11.31% | 6.72% | 8.39% | 1.08% |
| Utilities (XLU) | 5.96% | 5.96% | 19.57% | 20.79% | 15.41% | 4.86% | 11.51% | 6.25% |
May 142013
- International Energy Agency (IEA) says that increased oil production in North America (shale oil in USA and Canadian oil sands) is sending supply shocks throughout the world.
- U.S. households reduced debt during the first quarter to the lowest level since 2006.
- The prices paid for imported goods fell 0.5% in April, mainly because of lower oil costs.
- CBO reduces its estimate for US 2013 deficit to $642 billion.
