Wednesday, June 27, 2012

Morning Journal-Santelli and Taylor on Hayek


Economics

This Week’s Data


The International Council of Shopping Centers reported weekly sales of major retailer up 2.0 versus the prior week and up 2.7% versus the comparable period a year ago; Redbook Research reported month to date retail chain store sales up 2.3% on a year over year basis.

The April Case Shiller home price index rose 0.7% versus expectations of +0.4%.
http://scottgrannis.blogspot.com/2012/06/case-shiller-update.html

The June Conference Board index of consumer confidence came in at 62.0 versus estimates of 63.0.
http://advisorperspectives.com/dshort/updates/Conference-Board-Consumer-Confidence-Index.php

The June Richmond Fed’s manufacturing index was down 3.0% versus forecasts of an increase of 5.0%

Weekly mortgage applications fell 7.0% while purchase applications were down 1.0%
http://www.calculatedriskblog.com/2012/06/mba-mortgage-applications-decrease-in.html

May durable goods orders rose 1.1% versus expectations of +0.4%; however, April’s number was revised from +0.2% to -0.2%. Ex transportation, orders were up 0.4% versus estimates of up 0.8%.

Other

Comparing the ECRI Weekly Index with the Conference Board’s Leading Economic Index (medium):
http://www.zerohedge.com/news/turkey-mobilizing-media-manipulation-provocation-or-reality

A new look at the federal budget (deficit):
http://www.zerohedge.com/news/momentarily-stepping-back-trees-show-these-two-charts-forest

The chemical activity barometer (short):
http://www.zerohedge.com/news/supply-chain-slowdown-signals-us-economic-slump-ahead

Rick Santelli and John Taylor on Hayek (4 minute video):
http://www.zerohedge.com/news/santelli-and-taylor-hayekian-rules-and-saving-americas-economic-future

Why the economy is growing at a below average secular rate and will continue to do so unless we change our growth model (medium):
http://cafehayek.com/2012/06/two-different-stories.html

Politics

Domestic


The Arizona decision (medium):
http://www.nationalreview.com/articles/303968/arizona-s-victory-rich-lowry

International War Against Radical Islam

Obama’s search for a ‘win, win’ in Egypt (medium):
http://www.powerlineblog.com/archives/2012/06/barack-obamas-quest-for-that-elusive-foreign-policy-win-win.php

The latest from Turkey/Syria (medium):
http://www.zerohedge.com/news/turkey-mobilizing-media-manipulation-provocation-or-reality

News on Stocks in Our Portfolios

General Mills reported its fourth fiscal quarter earnings per share of $.60 versus estimates of $.59.


Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.