Daily Market Color 05/15/2013

Daily Market Color

05/15/2013

Economic Reports &Headlines

We are going to start this report off in Europe. First quarter GDP in France contracted more than expected on a quarterly basis, -20bps Vs -10bps. This is the second consecutive decline thus putting the country in a recession

German first quarter GDP grew less than expected on a quarterly basis, 10bps Vs 30bps.

First quarter GDP in Italy contracted more than expected, -50bps Vs -40bps.

Eurozone first quarter GDP declined more than expected, -20bps Vs -10bps  

Heading over to the UK, the labor market report came in slightly better than expected. Claimant count: -7.3k Vs -7k. Jobless rate: 7.8% Vs 7.9%.

On the domestic front, producer prices in the US for April came in line with consensus by declining 70bps on a month over month basis.

The Empire State Manufacturing Survey missed analysts’ estimates for May, -1.43 Vs 3.75.

Industrial production in April declined more than expected on a monthly basis, -50bps Vs -20bps.

The National Association of Home Builders, Housing Market Report, was in line with consensus at 44.

Future Reports

This evening at 7:50pm, Japan will issue first quarter GDP. The report is expected to show a 70bps quarterly increase.

Tomorrow we will get trade reports from Italy and the EU.

We will get a read on consumer prices in the US and the EU.

Additional reports to be released on the domestic front includes jobless claims, the Philly fed survey and housing starts.

                  

Trade

Stocks need fundamentals going forward to support this rallying. Nevertheless I am still long stocks and short the Yen.