Just one bit of meaningful economic data so far this week: The American service sector grew in September for the first time in a year. The Institute for Supply Management’s nonmanufacturing index scored 50.9 last month, just 9/10ths of a point above the growth/contraction tipping point. That certainly isn’t a booming service sector, but having contracted for the last 11 months… we’ll take it.
The American economy contracted only 0.7% in the second quarter, the government finalized today. That’s down from its previous projection of 1% and practically seals the deal for a positive GDP number when Uncle Sam gives his initial third-quarter guess in late October.
Some of Wall Street’s most prominent bears are turning bullish right now. But that doesn’t mean that your small-cap portfolio is safe. Here’s why these brilliant minds think that we’re back on the path to recovery — and why they’re wrong.
The FDIC is considering tapping its emergency line of credit with the Treasury. FDIC Chair Sheila Bair recently hinted after a speech at Georgetown University that all options are on the table when it comes time to replenish the dwindling Deposit Insurance Fund. We’ll find out more in the next few weeks after the FDIC board of directors meets.
A guy comes into the bar, and I figure he is a trucker because he looks like a trucker and he is wearing a greasy Peterbilt hat. So I say, “Are you a trucker?” and he answers “Yeah. What’s it to you, old man?”
Currencies rally… Eurozone growth unexpectedly stronger! FOMC extends QE… Norges is the first!
And Now… Today’s Pfennig!
The stock market is about to finish the best July since 1989. The S&P 500 is up over 8% this month, its best month since April and best July in 20 years. After yesterday’s 1% rally, the index is up to 987. Baring catastrophe today, the S&P will register its fifth consecutive monthly gain.
Dollar continues to slide… US GDP contracts but not as fast… Nordic currencies outperform… Japanese yen continues to fall… And Now… Today’s Pfennig!
The World Bank downgrades its world economic forecast, A few lessons from the school of German-style hyperinflation, Will we be seeing you in Vancouver this year? And plenty more…
Overnight markets ambush risk assets… Germany’s IFO Business Confidence gains again… A$’s get pounded by opposite thought story… More supply to auction off for the U.S….