Yep it is most definitely a SLOW news day and SO it appears that stuff like Dallas Fed Mfg survey MATTER. Maybe. it was NOT as bad as last month – ONLY -13.5% vs -21% last month – there, we said something NICE. Mom would be proud. Truth be known, though, it came in below the Bloomy consensus (-10%) and SO the plot thickens? Donno. It is Dallas Fed Mfg so we ask WHAT is manufactured in Dallas, anyways? All the BULLS for the bull mkt ‘V’ bottom statues and posters, maybe?? But we digress. Here’s a visual:
SO are we to take away from that visual that Adult Swim is OVER and it is safe to assume QE2 will NOT set sail? And if NOT then stocks really ought to adjust … how, lower? But we’re rates-guys and SO what then might that mean for USTs?
Clearly a case of OVER-THINK at moment based on Dallas Fed Mfg Survey:
IF yer thinking ‘V’ bottoms then just go with LESS-BAD is GOOD and do NOT click up the Dallas Fed website. Details and the read don’t sound to ‘glowing’ a review of the state of ‘things’:
- Texas factory activity was unchanged in August, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, came in at zero, posting a third consecutive month of little to no growth.
- The employment index turned negative for the first time in six months, largely due to the share of firms reporting layoffs rising from 15 percent in July to 23 percent in August, and hours worked contracted again. Wage and benefits costs rose modestly.
Good cop/bad cop routine continues:
- Most future indexes of manufacturing conditions fell in August, but remained in solid positive territory.
Back to our cars. Shows over. Boo Yahh …