I’ll post the daily Market Report and Market Analysis after the close. Here’s some news…
JOBLESS CLAIMS (Reuters)
“The number of Americans filing new claims for
unemployment benefits fell slightly more than expected last week, pointing to a
sustained improvement in labor market conditions. Initial claims for state
unemployment benefits declined 14,000 to a seasonally adjusted 298,000 for the
week ended Aug. 16, the Labor Department said on Thursday…it remains consistent
with solid job growth and claims are back at their pre-recession levels.”http://www.reuters.com/article/2014/08/21/us-jobless-claims-idUSKBN0GL16A20140821
PHILADELPIA FED & FLASH PMI RISES (Marketwatch)
The Philadelphia Fed reported on Thursday its
manufacturing index rose to a stronger-than-expected reading of 28 from 23.9 in
July, marking the best level since March 2011. Any reading above zero indicates
improving conditions… Markit reported its flash manufacturing purchasing managers
index rose to 58 from 55.8 in July, marking the best level since April 2010.
Any reading above 50 on this gauge indicates improving conditions.http://www.marketwatch.com/story/philly-fed-flash-pmi-point-to-manufacturing-optimism-2014-08-21?reflink=zacks
LEADING INDICATORS (Conference Board)
“The Conference Board Leading Economic Index® (LEI) for
the U.S. increased 0.9 percent in July to 103.3 (2004 = 100), following a 0.6
percent increase in June, and a 0.6 percent increase in May. “The LEI improved sharply in July, suggesting that the
economy is gaining traction and growth should continue at a strong pace for the
remainder of the year,” said Ataman Ozyildirim, Economist at The Conference
Board.” Press release at…
http://www.conference-board.org/data/bcicountry.cfm?cid=1FED MINUTES MORE HAWKISH THAT EXPECTED (CNBC)
“The Federal Reserve minutes released Wednesday were more hawkish than expected, and if wages improve in the next few jobs reports, then the central bank may change its view on raising interest rates, former Pimco CEO Mohamed El-Erian told CNBC. "With the exception of compensation, labor compensation, every indicator they look at has improved faster than they expected and … the labor market had moved noticeably closer to what's viewed as normal," he said Wednesday on "Closing Bell."… There is a strong argument being made that the Fed is trying to pursue too many objectives, he said. It's an argument El-Erian agrees with. "What it is sacrificing is financial stability. The Fed is willing to trade off immediate economic gains for financial instability down the road," he said.” Video at…
http://www.cnbc.com/id/101935061
This will make the markets even more jittery.
BIG MAC INDEX SAYS THE GOVERNMENT IS UNDERCOUNTING
INFLATION (Advisor perspectives)
“The Economist created the Big Mac Index
in 1986…The Big Mac Index just has one item. However, since the one item
contains beef, dairy (cheese), wheat (bun), cost of labor, and the cost of real
estate, I believe it is a good representation of prices in the United States
and abroad….By graphing the trend of the Big Mac Index each year since 1986, we
see that prices have accelerated much faster than the official prices reported
Consumer Price Index (CPI) – Bureau of Labor Statistics. Social Security
benefits are provided a cost of living adjustment based on the cost of living index. This index is based on
the CPI. If an individual received $1,000 per month in 1999, they are receiving
$1,410 today. In contrast, if the Big Mac Index were used, beneficiaries
would receive $1,970…” - James Cornehlson, posted at Advisor perspectives at…http://www.advisorperspectives.com/dshort/guest/James-Cornehlsen-140819-Big-Mac-Update.php
