Job creation and a more efficient distribution of wealth in America are hot topics in economics. While the Fed and the Obama Administration are putting their best foot forward to find a sustainable solution, some Americans are finding that their own innovative strategies are putting $$$ in their pockets a little quicker...
Antoine Dodson -- who skyrocketed to viral internet fame after a news report of him explaining how he chased a rapist from his sister's bedroom was turned into Auto-tune hit "Bed Intruder" -- has moved his family into a safer home. Dodson, who lamented that people needed to "hide your kids, hide your wife" from a rapist on the loose in public housing, tells UsMagazine.com, "We found a house! [We are so] excited ... It's for my whole family. And these are new houses that have just been built."
Dodson paid for the home with proceeds from the song (Brooklyn-based Gregory Brothers, who created the tune, split profits 50-50 with Dodson), which has been viewed more than 22 million times on YouTube.
ORIGINAL NEWS REPORT and ANTOINE'S MEAL TICKET
Capitalism lives on in America. It only takes 15 minutes!
Moving on....mutter mutter.
Personal Income and Spending data has been released. Spending rose 0.4%. Income improved 0.5%. Both metrics were slightly better than expected but well within the range of economist outlooks. The Core Personal Consumption Expenditure Price Index, preferred measure of inflation, rose 0.1% MoM and 1.4% YoY. Again both of these metrics were well within the range of forecasts. This was the fourth consecutive month that the CORE PCE number rose only 0.1% though (hey at least it's rising). If this read on inflation puts a check in the NO QEII column, then THIS SPEECH by FRBNY President Bill Dudley cancels it out. Bill sounds dovish....more to follow.
The savings rate ticked up by 0.1% to 5.8%, regardless of record low interest rates (high opportunity cost of saving). This is one of the reasons why the Fed is considering another Quantitative Easing program...to spur on spending and spook the market with the threat of inflation.
Recap of the data...
RTRS-US AUG PERSONAL SPENDING +0.4 PCT (CONSENSUS +0.3 PCT) VS JULY +0.4 PCT
RTRS-US AUG PERSONAL INCOME +0.5 PCT (CONS +0.3 PCT) VS JULY +0.2 PCT
RTRS-US AUG CORE PCE PRICE INDEX +0.1 PCT (+0.1169; CONS +0.1 PCT) VS JULY +0.1 PCT
RTRS-US AUG OVERALL PCE PRICE INDEX +0.2 PCT (+0.2342) VS JULY +0.2 PCT
RTRS-US AUG YEAR-OVER-YEAR PCE PRICE INDEX +1.5 PCT VS JULY +1.5 PCT), CORE +1.4 PCT VS JULY +1.4 PCT
RTRS-US AUG REAL CONSUMER SPENDING +0.2 PCT VS JULY +0.2 PCT
RTRS-US AUG PERSONAL SAVING RATE 5.8 PCT VS JULY 5.7 PCT
RTRS-US AUG MKT-BASED PCE PRICE INDEX +0.3 PCT (JULY +0.2 PCT), CORE +0.1 PCT (JULY +0.1 PCT)
RTRS-US AUG MKT-BASED YR-OVER-YR PCE PRICE INDEX +1.2 PCT, CORE +1.1 PCT
RTRS-US AUGUST PERSONAL INCOME RISE LARGEST SINCE DECEMBER 2009
RTRS-TABLE-U.S. Aug personal income rose 0.5 pct
Market Reaction...
Yield curve bear steepens. Rate sheet influential TSY yields higher. 10s currently -13/32 at 100-18+ yielding 2.558% (+4.6bps)
MBS prices lower. Yield spreads tighter. The November FNCL 4.0 is currently -0-05 at 102-10. This is a key level of support.
Stocks rally to session high but remain well off yesterday's high print. S&Ps currently +7.50 at 1144.25
If lenders take down indications right now...loan pricing would be worse.
NEXT UP: Consumer Sentiment at 955. ISM Manufacturing and Construction Spending at 10am. The market should focus on ISM data.
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