Morning Brief Wednesday July 18, 2012

Good Morning. Today is the second day of Congressional testimony for Chairman Bernanke, though the same prepared remarks. The only possible news is in regards to questions and subsequent answers. But it is highly unlikely anything different comes out today versus Tuesday’s testimony.

Later in the session the Fed beige book is released and is likely to confirm recent data and Fed speak. That the economy is weakening. At this point the US and global macro environment is becoming all too clear. This “soft patch” is anything but. The summer of 2011 was a soft patch as the inventory build cycle was able to provide a stimulus of sorts. But today with retail sales contracting, inventory is simply at levels beyond what is needed.

Adding to the economic weakness is the reality of a weak earnings season. Yet somehow the mainstream media spins the data as a “beat.” From Intel lowering forecasts to companies “beating” recently lowered guidance this earning season is anything but solid. Instead it shows an economy in transition.

As for the markets they remain challenging and patience is still needed. We enter, in some sense the “moment of truth” today in regards to

You need to be logged in to see this part of the content. Please Login to access.

If you enjoyed this article, please consider sharing it!
Icon Icon Icon

Related Posts

Popular Posts

Sorry but you do not have access to view the comments

Archived Posts By Date

Archived Posts By Subject


Opinions are those of the author(s),
and may contain errors and or omissions.
No warranties, either written or,
expressed are implied by this content.
Investment Advice
Content does not constitute investment
advice. Author may not disclose
financial positions in securities.

Get In Touch

Macro Story

Tony Pallotta

Contact via email

Technical Support

This website is designed to support
all browsers. If you have a question
or find an error, please contact us.