Wall Street Greek: Business News: Philly Focus

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We have a full slate of economic reports to digest within today's business news. The data highlights the state of the overall economy, employment situation, manufacturing and muni-bonds. There's also an underlying Philly theme to today's business news, with the Philadelphia Fed getting busy.

(Article interests: NYSE: ABK, NYSE: MBI, NYSE: BA, NYSE: ARO, BKS, CRM, BKE, LDK, ROST, PLCE, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD)

Business News

Weekly Initial Jobless Claims

For the week ending May 16, weekly jobless claims dropped modestly to a still distressing 631K, from a revised 643K figure from the week before. For the eternal optimists among us, this week's data proved better than the economists' consensus, which predicted a measure of 645K new claim filers. The four-week moving average claims figure fell by 3,500 to 628,500. Hey, at least things are not deteriorating at a faster rate. I hear ya... that's like saying at least I'm not bleeding to death faster.

Leading Indicators

More than two months after the stock market turned positive, the Leading Indicators Report for April is expected to show an upturn when reported today. Bloomberg's consensus of economists forecasts a 1.0% improvement, which compares against the 0.3% decline posted in March.

Municipal Bond Help

The House Financial Services Committee will hear testimony as it considers guaranteeing variable-rate bonds and short-term notes issued by municipalities. It seems everybody wants to get their hand into the cookie jar, and the Fed is finally showing signs of concern that its currency is getting fat and credibility running thin. The group of grumbling Congressmen will also debate reinsuring under-insured bonds. The downgrades of MBIA (NYSE: MBI) and Ambac (NYSE: ABK) have left some of these securities partially naked.

Philly Fed Survey

"The Greek" is partial to all things Philly, but I have to concede the lead to New York today. The Philly Fed's General Business Conditions Index is due this morning at 10:00 a.m. Considering the New York Fed's Empire State Manufacturing Index improved dramatically for May, there's all the reason to expect a continuation of improvement from the Philly region. Last month, Philly noted a better than 10 point improvement to -24.4, which still signifies economic contraction. Bloomberg's consensus of economists forecasts Philly might improve to -20.0 this time around. Still, like Rocky, the Philly underdog might surprise with a better turn out.

Natural Gas Report

The Energy Information Administration produces its Weekly Natural Gas Storage Report today at 10:30. Last week's report, covering the period ending on May 8, showed a big build in storage (95 Bcf) from the previous week. In this recession stricken environment, natural gas storage levels are understandably far above the mark set last year at this time (+497 Bcf). Even more telling, gas levels are 374 Bcf above the five-year average. Unlike oil, which started higher as early as mid-February, natural gas pricing has only just begun drawing a positive trend line this month.

If you are wondering why so, well it most likely has to do with the global market for oil versus local market dominance for natural gas. It's no coincidence that the dollar topped out around the same time dollar-denominated oil began its recovery, and has been weakening parallel to oil's rise ever since. Also, signs and hopes for emerging market revival preceded America's green shoots, perhaps helping to lift oil ahead of Nat Gas.

Philly Fed President

Correcting our note from yesterday, Philadelphia Federal Reserve President Charles Plosser addresses a group of New York money men at 7:00 p.m. tonight.

Corporate News Drivers

Boeing (NYSE: BA) holds an investors' meeting, and the earnings schedule highlights Aeropostale (NYSE: ARO), Alkermes (Nasdaq: ALKS), Barnes and Noble (NYSE: BKS), Brocade Communications (Nasdaq: BRCD), GameStop (NYSE: GME), Gap (NYSE: GPS), Hormel Foods (NYSE: HRL), LDK Solar (NYSE: LDK), MF Global (NYSE: MF), Nordson (Nasdaq: NDSN), Ross Stores (Nasdaq: ROST), Salesforce.com (NYSE: CRM), The Buckle (NYSE: BKE), Children's Place (Nasdaq: PLCE) and several others.