Friday 9/12 ... Data in, no one cares, Grab your Lehman Popcorn
Fri, Sep 12 2008, 9:11 AM
- FN 5.5's off a tick at 100-29, which in retrospect, suggests MBS commentators should have taken the week off after Tuesday afternoon (ultra narrow 6 tick wide volatility since then--in terms of closing price).
- PPI headline down .9 and core up a predictable .2. The headline was a bit lower than expected and was the first decline in almost a year. (thanks oil and china!) But no one cared/cared. Next!
- Next up to bat for the home team, RETAIL SALES!. A swing... AND IT'S BELTED DOWN THE LEFT FIELD LINE. GOING.... GOING.... FOUL BALL! That's right.... Sales down .3% and last mo. revised lower to -.5 from -.1. Despite the consumer weakness, no one cared. Ok everyone, it was a foul ball... Sit back down and wait for the next pitch...
- Oh... Rain Delay. Guess we'll have to wait for U Michigan to come up to bat. Our meteorologists predict the rain will mysteriously clear at oh, I don't know, about 10AM sharp? (In case you're not tracking the extended metaphor, we're talking about the next round of data at 10AM EDT, with consumer sentiment and Business Inventories).
- Perhaps this is overly presumptuous but it seems the market is more preoccupied with the "edge of it's seat" at the Lehman show. We would have needed something more convincing out of the scheduled data to divert our attention from Lehman (and Wamu et. al.) Rumors out now that BofA considering stepping in in a similar capacity to the Countrywide transaction. Wow, they are some generous folks! Oh wait, they'd probably grab another couple bil from the Fed.
- So here we are again... Waiting for something to pop. MAYBE we'll get some motivation from 10AM data, but until then, hurry up and wait. As always, we'll get you out if nasty clouds start gathering, but you know it takes pretty bad weather to cancel a "float club" meeting.
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