- Preliminary 4Q Non-farm Productivity fell .6% versus estimates of unchanged and a 4.5% increase in 3Q.
- Preliminary 4Q Unit Labor Costs rose 3.5% versus estimates of a 3.5% increase and a .5% decline in 3Q.
- Initial Jobless Claims fell to 273K last week versus estimates of 295K and 284K the prior week.
- Continuing Claims fell to 2509K versus estimates of 2585K and 2573K prior.
BOTTOM LINE: The productivity of US workers during the fourth quarter declined by the most since the third quarter of 2000 and labor costs rose, Bloomberg reported. These disappointing numbers will likely be revised to more positive levels after an expected upward revision to 4Q GDP. Moreover, the average of the last 2 quarters was still pretty good. I continue to believe unit labor costs will remain muted over the intermediate-term.
Initial Jobless Claims unexpectedly declined last week and the n
Today's Headlines
at 2006-02-06 23:45:56
Bloomberg:
- Exchange-traded funds are among the fastest-growing investments today, attracting one of every four new dollars going into stock funds last year.
- Matsushita Electric Industrial Co., the world’s biggest plasma television maker, raised its profit forecast 18% after sales of larger, more expensive sets increased fiscal third-quarter net income.
- The US said it won’t seek to impose economic sanctions on Iran if the UN nuclear watchdog sends the Islamic Republic before the Security Council over its atomic plans.
- General Motors(GM) handed out technology contracts to six companies including Electronic Data Systems(EDS), Hewlett-Packard(HPQ) and Cap Gemini SA in the largest award ever offered by a company.
- US retailers including Wal-Mart Stores(WMT) reported strong sales gains in January as gift cards, warm weather and a rebound in consumer confidence bolstered spending.
- The NASD is expanding a probe
Stocks Sharply Lower into Final Hour, Notwithstanding Lower Energy Prices and Strong Retail Data
at 2006-02-06 23:45:56
BOTTOM LINE: The Portfolio is lower into the final hour on losses in my Semiconductor longs, Medical Information Systems longs, Computer longs and Software longs. I added (IWM) and (QQQQ) shorts this afternoon, thus leaving the Portfolio 75% net long. The tone of the market is very negative as the advance/decline line is substantially lower, most sectors are declining and volume is heavy. Measures of investor anxiety are higher. The market's inability to mount any sort of rally today is a negative. Strong retail data, lower energy prices, stable interest rates and no escalation in the Iran situation could not spur gains today. I expect US stocks to trade modestly higher into the close from current levels on lower energy prices, bargain hunting and short-covering.
