Recent Uptick In Unit Labor Costs Unlikely To Sustain

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The latest productivity report had observers buzzing more about unit labor costs than output per hour. In 4Q16, unit labor costs jumped at an annual rate of 1.68 percent, up from 0.18 percent in 3Q16. This comes in the wake … Continued

December Payroll Report Ignites Hopes Of Wage Acceleration – How Justified?

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The last time average hourly earnings of U.S. private-sector employees grew with a three handle was April 2009 … means in the current recovery wages are yet to print growth of three percent.  December came close, with a year-over-year increase … Continued

Sales Of New And Existing Homes Break Out – Genuine Or False?

posted in: Economy | 0

There probably is an air of excitement among U.S. housing bulls – particularly the technically oriented ones.  Sales of both new and existing homes have broken out of recent ranges. In June, new homes rose 3.5 percent month-over-month to a … Continued

Fed’s Hawkish Desire Versus Uncooperative Macro Data

posted in: Credit, Economy | 0

The Fed is in a tight spot. Yesterday, on the day it told us it continues to have a slight tightening bias it published capacity utilization and industrial production for May.  Utilization dropped 0.4 percent month-over-month to 74.9 percent, a … Continued

S&P 500 Index: 200-DMA Path Of Least Resistance?

A week ago last Friday, U.S. stocks opened lower reacting to less-than-expected rise in April’s non-farm payroll.  As the session progressed, bids showed up, as traders began to price in lesser odds of a rate hike in June. Turns out … Continued

Momentum Continues In U.S. Equities, With VIX:VXV Continuing To Flash Caution

Are we seeing a classic ‘stocks turn ahead of fundamentals’ phenomenon? U.S. equities in general bottomed on February 11th after a brutal sell-off in January.  From late-December 2015 highs through the afore-mentioned low, the S&P 500 index dropped 13 percent … Continued

Markets Not Worried About Inflation Intermediate-Term, They Are Probably Right

posted in: Credit, Economy | 0

The Federal Reserve would like some inflation.  In fact, every major central bank would.  Or, for that matter, every debtor would – be it an individual, a corporation, or a sovereign nation. For debtors, a little inflation goes a long … Continued

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