Retail Sales/Empire/PPI/Evans- GDP remains firm

As previously discussed, GDP looks to be growing sequentially, and should do fine next year if fiscal policy doesn’t tighten.

But still not so good for people working for a living, pretty good for corporate earnings.

And risks remain- Europe, China, Super Committee, etc. etc.

And look for a relief rally if Europe all agrees the ECB writes the check,
followed by a sell off due to the austerity that accompanies it.

Karim writes:

Data confirms Q4 GDP growth tracking 3.25%.; slight boost to Q1 estimate; more like 2.75% vs 2.5% previously.


  • Up 0.5% headline and 0.6% control group
  • Iphone 4s definitely helped as electronics sales rise 3.7% for the month, largest gain since 11/09


  • Rises to 6mth high of 0.6 from -8.48 in October; but 0.6 still weak historically.
  • Also, new orders and employment component both soften in the month.


  • Pipeline pressures receding as -0.3% headline, -0.4% on consumer goods, -1.1% intermediate stage, and -2.5% crude stage


  • Evans advocating 3% inflation target and linking policy guidance to unemployment/inflation objective
  • Also acknowledges he is ‘sufficiently outside’ consensus at the Fed
  • Bullard rejects linking policy to numerical objectives and states would need to see evidence of deterioration in U.S. economy to support additional easing