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January 2, 2013

Fiscal Cliff Resolution Slams Treasurys

January 2, 2013

Fiscal Cliff Resolution Slams Treasurys

Resolution of the fiscal cliff issue has flipped the risk-on/risk-off switch and money is flowing to risk assets and out of the safety of Treasurys.  The bigger picture is that this was a conjured issue.  Close to zero was done to address the longer term fiscal health of the United Steted government.

Chain Store Sales (week ended 12/29/2012)

ICSC-Goldman Store Sales

– Store Sales – Week/Week +0.6%
– Store Sales – Year/Year 2.7%

Redbook

– Store Sales Year/Year +2.9%

Construction Spending (November 2012)

– Construction Spending – Month/Month -0.3%. Previous was +1.4%

Manufacturing (December 2012)

ISM Manufacturing Index

– Index Level 50.7.  Previous was 49.5. 

A reading above 50 indicating growth.  This Index has been negative 4 of the last 7 months indicating a flat sector.
 
PMI Manufacturing Index

– Index Level 54.0.  Previous was 52.8.  This is a survey Index produced by Markit Economics and currently it indicates growth.