Employment Situation Mediocre, Market Sells Off


One word for the Employment Situation report: mediocre. Non-farm payrolls rose 215,000 in July. The unemployment rate remained unchanged at 5.3 percent, and the labor force participation rate came in at 62.6 percent. The most recent Employment Cost Index report showed the lowest increase in employee compensation on record thanks, in part, to increased labor Read More »

spx intraday

Markets Plunge On Surge In Job Cuts


President Obama and Democrats continue to make major cuts to the military. In the Challenger Job-Cut report, a major Army cut of 57,000 jobs will occur over the next two years. The Army cutback made for an outsized 105,696 layoff count in July. But it wasn’t just the Army. Heavy layoffs of 18,891, were also Read More »

International Trade Exports Down Big YOY


In the International Trade report, what we really care about is the exports component. Exports were down -0.1 percent. Here is a chart of the month to month exports number: What really reveals the trend though is the year over year exports chart published by Econoday: Folks, that’s a horrible chart. The rising U.S. dollar Read More »

Clean Power Plan Cleans Out Business


President Obama and Democrats released the Clean Power Plan, the biggest steps ever taken to “clean” the environment. The White House posted President Obama’s speech today on the new Clean Power Plan: It’s all good until you understand what this legislation means from an economics point of view. Folks, I like the sound of healthier Read More »

ISM Manufacturing Hits 3 Month Low


The ISM Manufacturing hit a 3 month low. Weak employment and continued contraction in exports held down the manufacturing index which fell -0.8 in July to a lower-than-expected 52.7. The consensus range was 53.0 to 54.5. Employment growth fell to 52.7 while new export orders fell to 48.0 for the 5th sub-50 contractionary reading of Read More »

Personal Income and Outlays Report Flat


Consumer spending rose 0.2 percent in June, down from a 0.7 percent gain in May. The Personal Income and Outlays report does not support the Federal Reserve’s transitory thesis. Wages and Salaries were also flat at 0.2%. It is clear from the chart below that personal income and consumer spending growth has completely stalled: Notice Read More »


BEA Now Using International Trade Data For GDP Estimates


The BEA has acknowledged the problem with huge revisions to the GDP. As a result, the BEA will now use data from a new report called the International Trade In Goods. As you might already know, I’m big on international trade and have certification in the subject. The U.S. Census Bureau Read More »


Janet Yellen and FOMC Announcement Nonsense


Folks, the FOMC announcement today was a bunch of nonsense. I’m not going to waste your time breaking down the FOMC announcement because it was so stupid today. Why am I so indignant to the FOMC announcement today? There was no mention of the negative effects of the strong U.S. dollar! If you had any Read More »

Durable Goods Orders Flat But New Orders Plunge YOY


The Durable Goods Orders report came in at 3.4 percent. The consensus range was 0.6 percent to 6.4 percent. Excluding aircraft orders, new orders rose just 0.8 percent. The headline Durable Goods Orders report was not good or bad, it was just BLAH. We basically have sideways action on the chart. However, if you dig Read More »

Democrats Target Jobs With Minimum Wage Hikes


One of the few bright spots in the U.S. economy has been in the lower paying service sector industry. Now, the push by Democrats for a minimum wage hike is a direct target at job creation in the service sector industry. Please remember that this is not a subjective interpretation based on a political bias, Read More »