Friday, May 28, 2010

Friday Night Summary

by Bill McBride on 5/28/2010 11:55:00 PM

From Bloomberg: Spain Loses AAA Rating at Fitch as Europe Battles Debt Crisis

The euro declined to 1.2274 dollars on the news. The TED spread increased to 38.11. This is still fairly low, but has been increasing ... Note: This is the difference between the interbank rate for three month loans and the three month Treasury and is considered a measure of credit stress. The peak was 463 on Oct 10th and a normal spread is below 50 bps.

The BEA reported April Personal Income up 0.4%, Spending up slightly.

The Institute for Supply Management – Chicago reported the "CHICAGO BUSINESS BAROMETER eased" and "EMPLOYMENT slipped below neutral". New orders were softer, and it appears the inventory adjustment is over.

The National Restaurant Association index decreased slightly, but still showed some expansion. Same store sales and customer traffic both showed declines in April.

And a few interesting articles:

  • From Bloomberg: New Home Sales Set to Plunge in Former Bubble Markets

  • From David Bracken at the Newobserver.com: Sales stop for Raleigh condo project

  • From the NY Times: Placing the Blame as Students Are Buried in Debt

  • And from the NY Times: BP Engineers Making Little Headway on Leaking Well

    Best to all.