Wednesday, May 25, 2011
Is This Doom Day?
Durable goods this morning - inventories, order and shipments ratios are troubling. Inventories too high, shipments too low and new orders fell.
Yesterday New Home sales were up (see the above link to Census Economic Indicators), but everyone forgot that FHA increased insurance premiums in April, so that jacked up quick contract rates. Thus it was probably a blip, and not a very encouraging blip at that:
FHA deserves a whole long post of its own - the worst threat to housing prices is the FHA situation, because it cuts into new home buying for the future.
API said that gas inventories are building in the US, and Mastercard said that gas purchases were down YoY, so the odds of the crude inventories report looking good are pretty poor. Oil is really trading inverse to the dollar as everyone tries to cushion risk.