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June 22, 2006
U.S. economy softer than expected, Thurs., June 22, 2006, 10:06 AM
The U.S. Leading Economic Indicators (LEI) are reported as being down -0.6 pct. The consensus of the Wall Street estimates had been -0.5 pct.
Econoday will be reporting on this matter later this morning.
There will be further and louder calls for the FOMC to back off on the rate hikes as a result.
Meanwhile the USD is strengthening, and gold selling down a bit.
Posted by Posted by Bill Cara on June 22, 2006 10:06:25 AM | Category: Economics
Discourse
Larry Berman of CIBC World Markets looking for 1136 on S&P by October. Sees 10% bounce in gold stocks here (which he would then be looking to pocket). Interesting comment that volume has been light after huge reversal day of last Thursday indicating lack of conviction. (My take was that it was huge short squeeze.) Definitely worth a look:
Posted by: MarkM ![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
June 22, 2006 12:55 PM [link]
I find it interesting that Econoday say:
"The majority of the components of the leading indicators have been reported earlier in the month so that the composite index doesn't necessarily reveal new information about the economy. Bond investors tend to be less interested in this index than equity investors. Also, the non-financial media tends to give this index more press than it deserves."
If so, LEI must be relatively easy for economists to predict. If the components are reported separately, the traders are probably having their economists strip out the already-reported components to see what new info there is.
The markets went down just slightly at 7am when the LEI was reported.
Posted by: tc![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
June 22, 2006 10:21 AM [link]