Late Night With Markos
Good evening my friends. I felt a bit empty after not having authored anything all day, so bear with me... I thought a late night preview to Friday's trading day couldn't hurt. Tomorrow, I believe reality sets in, as investors realize that inflation is creeping while consumer confidence is waining. We get two key reports tomorrow in the CPI reading and the Michigan consumer sentiment survey.
Bloomberg's consensus is looking for a rise of 0.3% in February's CPI data, compared to an increase of 0.2% in January. CPI is generally considered more important than the PPI report, so pay attention for further signs of inflation, as it threatens your equity portfolio, in our view. Even though we called it, we were not happy to see food and energy prices driving higher PPI in Thursday's report.
February industrial production is expected to show an increase of 0.3%, compared to a 0.5% decline in January. Keep an eye on capacity utilization, as it is key this time around. February capacity utilization is seen measuring at 81.3%, versus 81.2% in January. We expect capacity utilization will come in below consensus, as last week's productivity result indicates idle capacity may exist in the system. Productivity weakness was also likely impacted by the work off of inventory though. Do not miss the 10:00 a.m. reading of the University of Michigan's sentiment measure for March. Again, signs of a cautious consumer could send equities to the critical care unit. Bloomberg's consensus is looking for a reading of 89.5 for March, versus a measure of 91.3 in February. Look for earnings reports from Anntaylor Stores, Kellwood Co. and Georgia Gulf Corp.
Iran will be back in the spotlight, but I expect oil wants to head sharply lower now, barring any irregular military activity or conduct by Iran and its egotistical leader. Ahmadinejad wants to come to New York next week with 25 security personnel, in order to be present when the Security Council meets to discuss and possibly vote on the new draft resolution. I get the feeling this could be the last time Mahmoud meets Manhattan. I'll be there again for a glimpse of this man who thinks he can change world order. Note, I didn't say "the world order."
Asian markets seem tense this evening/morning, and Japan is headed lower while the yen strengthens against the dollar. Shares are higher in Hong Kong at the start, but it'll be a long day, I suspect. I think the U.S. markets will give back a lot of ground on Friday, and please don't shoot the messenger... I also believe the subprime bounce will prove an anomaly, and a second chance for shareholders to escape many doomed players in the mortgage market.
To receive "The Greek's Week Ahead" and our daily reports via email, click here and provide us with your email address. We respect your privacy and will never share your information with any third party. (disclosure)
Bloomberg's consensus is looking for a rise of 0.3% in February's CPI data, compared to an increase of 0.2% in January. CPI is generally considered more important than the PPI report, so pay attention for further signs of inflation, as it threatens your equity portfolio, in our view. Even though we called it, we were not happy to see food and energy prices driving higher PPI in Thursday's report.
February industrial production is expected to show an increase of 0.3%, compared to a 0.5% decline in January. Keep an eye on capacity utilization, as it is key this time around. February capacity utilization is seen measuring at 81.3%, versus 81.2% in January. We expect capacity utilization will come in below consensus, as last week's productivity result indicates idle capacity may exist in the system. Productivity weakness was also likely impacted by the work off of inventory though. Do not miss the 10:00 a.m. reading of the University of Michigan's sentiment measure for March. Again, signs of a cautious consumer could send equities to the critical care unit. Bloomberg's consensus is looking for a reading of 89.5 for March, versus a measure of 91.3 in February. Look for earnings reports from Anntaylor Stores, Kellwood Co. and Georgia Gulf Corp.
Iran will be back in the spotlight, but I expect oil wants to head sharply lower now, barring any irregular military activity or conduct by Iran and its egotistical leader. Ahmadinejad wants to come to New York next week with 25 security personnel, in order to be present when the Security Council meets to discuss and possibly vote on the new draft resolution. I get the feeling this could be the last time Mahmoud meets Manhattan. I'll be there again for a glimpse of this man who thinks he can change world order. Note, I didn't say "the world order."
Asian markets seem tense this evening/morning, and Japan is headed lower while the yen strengthens against the dollar. Shares are higher in Hong Kong at the start, but it'll be a long day, I suspect. I think the U.S. markets will give back a lot of ground on Friday, and please don't shoot the messenger... I also believe the subprime bounce will prove an anomaly, and a second chance for shareholders to escape many doomed players in the mortgage market.
To receive "The Greek's Week Ahead" and our daily reports via email, click here and provide us with your email address. We respect your privacy and will never share your information with any third party. (disclosure)
posted by The Greek | 9:58 PM
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