U.S. Achieves Escape Velocity?
BEA Revises 2nd Quarter 2014 GDP Growth Up to 4.18% Annualized Rate
by Rick Davis, Consumer Metrics Institute
In their second estimate of the US GDP for the second quarter of 2014, the Bureau of Economic Analysis (BEA) reported that the economy was growing at a +4.18% annualized rate, up about a quarter of a percent from their previous estimate. When compared to the prior quarter, the new measurement is now up about 6.3% from a -2.11% contraction rate for the 1st quarter of 2014. This is the largest positive quarter to quarter improvement in GDP growth in 14 years.
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Market Commentary: SP500 Closes At New Historic High, Volume Low
Closing Market Commentary For 08-29-2014
HFT algo computer market manipulation at its best started at 3:35 on anemic volume pushing the SP500 up 3.64 points. Somedays this market is all smoke and mirrors, like today, as the Wall Street Marketeers set up the averages for the big short on Tuesday and shaft the 'Sheeples'.
By 4 pm the averages all closed in the green ahead of the Labor Day Weekend. The SP500 marked an new historic closing high which I am sure will impress the 'Sheeples' out there.
What We Read Today 29 August 2014
Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
- Housing Recovery: Illusion or Reality? (Michael Haltman, GEIDiscussion Group, LinkedIn) Michael Haltman contributes to GEI. He discusses an article by Michael Sincere at MarketWatch (see next article) which is a review of an article by Keith Jurow. Haltman wants to believe that the U.S. housing market will continue to climb, but he finds that arguments presented by Keith Jurow and discussed by Sincere for a continuing bear market for U.S. housing cannot be dismissed out of hand. Jurow's article can be read at GEI Analysis: Why the Trade-Up Housing Market Is Gone.
Leading Index Review: July 2014 Philly Fed Leading Index Growth Rate Statistically Unchanged
Econintersect: The July forecast now shows growth is projected at 1.6% over the next 6 months. A positive index number projects positive economic growth for the next 6 months. A review of all major leading indicators follows - and no leading index is particularily strong.
Market Commentary: Averages Creep Back Up Into The Green
Midday Market Commentary For 08-29-2014
After the morning market did the 'usual' dippy-do, rising from the doldrums to post green numbers is leaving investors scratching their heads. Falling volume and rising numbers is not very comforting to investors worried about the Russian/Ukraine issues and how it effects the EU and ultimately the US markets.
By noon the SP500 had climbed above it historic closing high and was leveling off. The small caps were reporting the largest gains as volume became anemic.
Final August 2014 Michigan Consumer Sentiment Bounces Back
The Final University of Michigan Consumer Sentiment for August came in at 82.5, a bounce back from the 79.2 preliminary reading and its highest level since the April final. Today's number topped the Investing.com forecast of 80.1.
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22 August 2014: ECRI's WLI Growth Index Decline Continues
ECRI's WLI Growth Index continues its decline but remains in positive territory. A positive number predicts economic expansion to come within the next six months.
Google Reveals Delivery Drone Prototype
Google reveals first prototype for Googles Project Wing a delivery drone to rival Amazons Prime Air.
August 2014 Chicago Purchasing Managers Barometer Strengthens Reversing Last Month's Decline
Econintersect: The Chicago Purchasing Managers Index rose 11.7 points, more than reversing last months 10 point decline.
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Market Commentary: Markets Open Up, Then Turn Down
Opening Market Commentary For 08-29-2014
Premarkets were up +0.20% and the markets opened the same way, but began to reverse course immediately melting downward on low volume.
By 10 am the large caps were in the red and the small caps while about even and in the green, were about to turn red. Hard to detect a session trend as any morning weakness usually turns back up somewhat.
July 2014 Personal Income and Expenditures Under Expectations
Written by Steven Hansen
It is not really the problem that this noisy data series disappointed this month, but it throws a monkey wrench into the gears of those who believe the economy will be building steam as the year progresses. Consumer spending growth was less than last month - and in a consumer economy, the opposite needs to happen for the economy to pick up steam.
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The Right Approach To Day Trading Forex
Online Trading Academy Article of the Week
by Sam Evans, Online Trading Academy
Ask the majority of people who want to enter the world of speculative market trading what they like the idea of most and the majority will tell you "Day Trading." In my experience I believe that the idea of day trading has a certain level of mystique attached to it, leading many to believe that it is not only glamorous, but a lucrative way to approach generating consistent profits in the markets.
One World, One Bank, One Currency
Addison Wiggin, Daily Reckoning
"The government is very good at making things overly complicated for the purpose of obscuring what's really going on from the public," observed hedge fund manager Erik Townsend during our interview in May.
He was making a point about the 2008 bailouts. The Federal Reserve played a leading role, applying trillions in paper-clip and rubber-band solutions. The Fed's balance sheet swelled from $900 billion in September 2008 to $4.4 trillion as we go to press.
Lyme-like Disease May Result from Related Unknown Bacteria
by Tim Roberts, The Conversation
A government investigation into whether Lyme disease exists in Australia and how to treat it has ended without being able to resolve the issues. But there is a plausible explanation for why people here report a Lyme-like disease.
Instituted by the chief medical officer, the Clinical Advisory Committee on Lyme Disease was set up in 2013 to work out how to diagnose and treat what it called 'Lyme disease-like syndrome'. But the committee says that can't be done until we know what causes the illness and how it is spread.
Putin's Food Import Ban Is Having High-Price Consequences
from Felix Richter, Statista.com
by Niall McCarthy
Russia banned Western food imports on August 7 in retaliation for sanctions over the conflict in Ukraine.
Railroads Vital Role in U.S. Commerce
by Charles Davidson - EconSouth, Federal Reserve Bank of Atlanta
The freight railroad system was one of America's early infrastructure successes, and, despite great changes in the U.S. economy, it remains a vital link in the nation's commerce. In recent years, railroads have benefited from a growing population and economy, both of which increase the number of containers crisscrossing the country to destinations near and abroad as part of the intermodal transport system. Intermodal is the present and the future of the freight rail industry. This comes at a good time as demand to haul coal is slipping,. Other factors in addition to intermodal traffic are making up for the dip in coal shipments, including a stronger economy and higher prices, as well as rising crude oil volumes.
Economic Growth Expected to Pick Up in the Next Few Years
from the Congressional Budget Office
Yesterday CBO released its updated budget and economic outlook. To get a quick overview of our new economic forecast, view The Economic Outlook for 2014 to 2024 in 15 Slides. As described in both the report and slides, CBO anticipates that, under the assumption that current laws governing federal taxes and spending generally remain in place, the economy will grow slowly this year, on balance, and then at a faster but still moderate pace over the next few years.
Fed's Balance Sheet 27 August 2014 - No Significant Change from Last Week
Total Fed Balance Sheet
Fed's Balance Sheet week ending balance sheet was $4.371 trillion - well below the record $4.389 for week ending 13 August 2014. The complete balance sheet data and graphical breakdown of the cumulative and weekly changes follows the "read more".
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Visual Proof That This "BULL MARKET" Is A Scam
by Michael Clark
Many people on this site have been arguing that this "BULL MARKET" is a scam, purchased by the FEDERAL RESERVE BOARD'S NON-PRINTING OF MONEY. Some argue (the literalists) that the FED is NOT printing money -- because they simply transfer money across spreadsheets from account to account. There is no actual printing of money involved. Some argue that the FED's job is to stimulate the economy. But have they stimulated the economy? The Fed has spent trillions to make the economy recover:
Investing.com Technical Summary 28 August 2014
Investing.com Technical Analysis (as of Thu, 28 August 2014 05:00pm EDT)
by Investing.com Staff, Investing.com
Below, technical overviews and analysis for key stock indices, commodities and currency pairs,
based on market activity at the close of the 28 August 2014 U.S. session. This information is a comprehensive summary derived from simple and exponential moving averages along with key technical indicators shown for specific time intervals.
Two Information Technology Executives Charged With Mischaracterizing Resale Transactions to Increase Revenue
from the Securities and Exchange Commission
The Securities and Exchange Commission today charged two executives at a Dallas-based information technology company with mischaracterizing an arrangement with an equipment manufacturer to purport that it was conducting so-called 'resale transactions' to inflate the company's reported revenue.
Infographic of the Day: The Decline of (Liberal) Arts
A broad education in the humanities and social sciences, also known as liberal arts, was once the gold standard in education.
