"DETROIT (AP) -- General Motors, Ford, Chrysler, Toyota and Nissan all reported double-digit sales gains last month, clear signs that U.S. auto sales will remain strong into the second half of the year."
But how do you spell channel stuffing? "Some 3.27 million new cars are now sitting on lots across the U.S., more than there have been in almost five years, according to Automotive News. A year ago at this time, by contrast, there were 2.7 million vehicles lying in wait across the country; summer 2011 saw an inventory of about 1 million fewer cars." (Bloomberg Business Week 7/31/2013).
And so everyone cheers the ISM numbers released today. And based on what is perceived as an "improving economy", what else occurs today"? 1. The U.S. dollar screams higher.....bad for U.S. exports. 2. The 10 year treasury interest rate screams higher by over 5% (now at a yield of 2.72%.....bad for real estate market/construction spending. 3. the price of oil jumps higher by 2.7% and a second day like today will push a barrel of oil over $110....bad for consumer spending (spend more on gas means spending less on other consumer products).
S&P setting new records. Precious metal prices getting hammered (even though Bernanke just announced he will keep his foot on the QE gas pedal). Everything getting influenced by government reports on economic activity. But then there are "lies, damned lies, and statistics".
Doesn't everything look great today? Tomorrow SLW will likely suffer another bout of indigestion when the BLS again reports it's monthly jobs numbers. We'll likely see an increase in part time jobs and a decrease in full time jobs....but a job is just a job in the myopic view of the BLS! And so everything will smell like roses except to a few of us SLW holders. But, be happy...don't worry. Next week is a new week and reality will start setting in to all those gleeful party goers.
Maybe it was the allure of these new August 9th options that triggered easy money to drive it down to squat and then buy in and make a quick 100%, Who knows? It also could be that if they revised how they determine CDP, maybe the jobs are next. A friend got laid off today, so she probably counts as two new jobs since they can rehire two for the price of one. Seems like a reasonable assumption to me.
Any growth experienced in this country over the last 5 years has occurred.... in spite of Obama! And any "growth" actually attributed to Obama, when examined under a microscope, would be seen as nothing more than a cancerous growth that should be removed immediately if it hasn't already died off (Think Solyndra). But that is not say that Obama has not been spending other people's money like a drunken sailor without creating anything of lasting value.
And as far as our wonderful Democratic and Republican congressman are concerned as far as taking responsibility and doing their jobs in creating a national budget by their Oct 1st deadline.....naw...take a vacation instead! They're all worthless!
SLW may decline a tad bit tomorrow but it's days below $20/sh are all in the past. IMO