Update: El-Erian on the imminent market pullback: Market Mover Friday: Consumer Sentiment plunges, CPI flat…
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CNBC: “The stock market has gotten ahead of reality, Pimco’s Mohamed El-Erian told CNBC Friday.
In a continuation of recent comments, El-Erian, co-chief executive officer of the largest bond fund manager in the world, said the US has yet to see a durable and sustainable recovery.
“Stock investors are making overly optimistic assumptions,” El-Erian said. “The key stimulus has already come into the consumer and has helped in the last few months. But for the third and fourth quarters looking ahead, I am not so sure things will be as good.”
Just three weeks ago, El-Erian told CNBC that the stock market spent July on a “sugar high,” rising to levels not justified by an economy that is still limping along….”
Market Mover Tuesday: Housing Data and the Treasury Auctions begin….
The Mortgage Bankers Association slashed their estimates yesterday, more on that later….for the next two days, we are also waiting for language after the Fed meeting wraps up to see the exit strategy….
This morning we get sales data:
…At 10 a.m., the National Association of Realtors will report on May sales of existing homes and the Federal Housing Finance Agency will release home-price data for April.
The Treasury Department will auction $60 billion in two-year notes Tuesday. Ahead of the sale, Treasurys were falling, with the two-year note sliding 3/32 to yield 1.174%, and the 10-year note sliding 10/32 to yield 3.722%….
Market Mover Wednesday: CPI Rises Less Than Expected, Up 0.1% in May – CNBC.com
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Market Mover Friday: GDP drops 5.7%….
They are celebrating like it’s over. I say it aint over…Roubini expects a double bottom, seems likely the way they are throwing money around, if you add enough liquidity there will be a temporary boost in GDP, but it isnt organic GROWTH, not real JOBS, therefore unsustainable, especially if it is a false bump based on money printing antics, then the second bottom will hurt all the more..
Why the hexx cant they just let recessions happen and not frak with them? It is part of the economic cycle, we have safety nets to help people get through it after all, that is what the safety nets are for!!
Gross domestic product, which measures total goods and services output within U.S. borders, dropped at a 5.7 percent annual rate, the department said, less than the 6.1 percent estimated by the government last month.The revisions were below market expectations for a 5.5 percent contraction for the January-March quarter.
Output has declined for three straight quarters for the first time since 1974-1975.
The Commerce Department’s preliminary report also showed corporate profits after taxes increased 1.1 percent in the first quarter, the first increase in a year, after plummeting 10.7 percent in the fourth quarter. Analysts polled by Reuters had forecast profits dropping 7 percent.
Economic activity in the first quarter was dragged down by cutbacks in business, federal government, residential and nonresidential investment as well as a drop in exports.
Gold is on fire BTW as Oil also continues to rise on the weak US dollar…now at 79- level not seen since December..
GOLD up 14.70 to 976.20 now…my GOLD is still on its run
Oil up 1.15 to 66.23
Moderate in the Middle 