The DOW gaped up at the opening and climbed to one percent in 15 minutes and 1.09% by 10 am. WTI oil is steeply trending down and Brent failed at its resistance while the U.S. Dollar is trending up, currently at the low 99's. Intel Slashes Q1 Revenue Forecast by 7%, Blames "Weak Demand" while the labor market is strengthening, but U.S. retail sales weak for February.
By 10:30 the averages were off the morning highs and trending sideways mimicking the falling WTI oil which is getting closer to its ~47.50 support.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
Econintersect's analysis of final business sales data (retail plus wholesale plus manufacturing) shows unadjusted sales significantly declined compared to the previous month, and this sector of the economy is in contraction. US Census agrees BUT as this series is moderately noisy - the real metric is the 3 month rolling averages - and that metric continues to decelerate and now is now barely in expansion and is below the range seen in the last 18 months. Unadjusted inventories are falling but the inventory-to-sales ratios are now at recessionary levels.
And to complete this morning's trifecta of disappointment, Business Inventories miss (for the 8th of the last 9 months) and show no change MoM - the weakest since May 2013. Building Materials, Furniture, and Autos saw inventories fall as Department Store inventories rose. Coupled with sales weakness (retail sales -0.9%), this is the highest inventory-to-sales ratio since Lehman... just as with Wholesale inventories...
Worst monthly change since May 2013...
and highest inventrory to sales ratio since Lehman...
(Reuters) - Lumber Liquidators Holdings , facing U.S. government probes over claims of dangerous levels of a cancer-causing substance in its flooring products, defended the safety of its products and gave a blow-by-blow account of its testing process in efforts to assuage investors' concerns.
NEW YORK (Reuters) - U.S. stocks rose modestly on Thursday, partially rebounding after a recent bout of weakness, though a surprise drop in retail sales and a weak outlook from Intel limited the day's gains.
Despite no help from USDJPY, credit, or bonds; US equity markets have algo-ised vertically since the US Open as investors machines BTFWRSSL (Buy The F###ing Worst Retail Sales Since Lehman).It appears investors are once again listening to a certain "world-renowned" talking head on CNBC. But we have seen this divergence before...
Deja Bonds Vu...
And JPY's not helping...
Of course the real reason for the ramp is as follows:
The author of the "Gartman Letter" told CNBC Thursday that his "interest is not in owning U.S. shares at this point."
(Reuters) - Intel Corp slashed its revenue forecast for the first quarter by nearly $1 billion, citing lower-than-expected demand for business PCs and lower inventory levels across the PC supply chain.
With German media asking "who is more dangerous for us? Greece or Russia," recent actions by both 'antagonists' in that question suggest they may become one and the same sooner than many expected. With tensions rising between Greece and the Eurogroup, recent and future visits to Russia have gained in importance since Russian FinMin confirmed that Moscow "could consider financial help to Greece." While this Russian pivot meme was the stuff of conspiracy theorists just weeks ago, The BBC is now asking directly, "could Europe lose Greece to Russia?" and with more Greeks positive on Russia (61%) than Europe (23%), it should not shock anyone.
Deepening ties between Greece's new government and Russia have set off alarm bells across Europe, as the leaders in Athens wrangle with international creditors over reforms needed to avoid bankruptcy. While Greece may be eyeing Moscow as a bargaining chip, some fear it is inexorably moving away from the West, towards a more benevolent ally, a potential investor and a creditor. As The BBC asks, Europe is not pleased. Should it also be worried?
A drove of Greek cabinet members will be heading to Moscow.
Prime Minister Alexis Tsipras will be hosted by Russian President Vladimir Putin in May, accompanied by coalition partner Panos Kammenos, defence minister and leader of the populist right-wing Independent Greeks party.
The timing has not escaped analysts.
Greece's bailout extension expires at the end of June and the worst k ...
WASHINGTON (Reuters) - U.S. retail sales unexpectedly fell for a third straight month in February likely as harsh weather kept consumers from automobile showrooms and shopping malls, which could hurt growth prospects for the first quarter.
(Reuters) - With shallow pockets but a deep commitment to promote "living wages", women's advocacy group UltraViolet has peppered Target Corp with cheap location-focused online ads, challenging it to match Wal-Mart Stores Inc's promise of $10-an-hour base pay.
Unpossible? Chipmaker Intel just took an ax to its Q1 global revenue expectations:
*INTC SEES 1Q REV. $12.5B-$13.1B, SAW $13.2B-$14.2B, EST.$13.72B
*INTEL CITES 'WEAKER THAN EXPECTED` BUSINESS DESKTOP PC DEMAND
Of course, we will be told this is one-off and that Intel is now no longer a belwether but "weaker than expected conditions in Europe," is not what the talking heads have been telling us.
Full Intel Statement:
Intel Corporation today announced that first-quarter revenue is expected to be below the company's previous outlook. The company now expects first-quarter revenue to be $12.8 billion, plus or minus $300 million, compared to the previous expectation of $13.7 billion, plus or minus $500 million.
The change in revenue outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain. The company believes the changes to demand and inventory patterns are caused by lower than expected Windows XP refresh in small and medium business and increasingly challenging macroeconomic and currency conditions, particularly in Europe.
The data center business is meeting expectations.
The company is forecasting the mid-point of the gross margin range to remain at 60 percent, plus or minus a couple of percentage p ...
Global trade prices are continuing to deflate. Import prices are down 9.4% from a year ago, while export prices are down 5.9% from a year ago. Of course oil prices were up 6.5% this month, but agricultural prices fell 2%.
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