Rut Roh Thursday

Posted 2007-05-10 08:52
by Karl Denninger

Bad news this morning..... of course this means the market will go up, right?

The trade deficit was up 10.4% in March (from February) to $63.9 billion. This was up significantly from the $60b that was forecast, and was largely on the back of oil imports.

This is a serious problem not because of the deficit per-se, but because the deficit is an assumed portion of the GDP computation. Backing this number into the first quarter GDP, we now have GDP growth of 0.76%, down a full half-point from what was reported.

There's that ugly "R" word creeping in there again....

Unemployment numbers were down 3k to 297,000. That number was a yawner; slightly better than expected, but statistically in the noise level.

Walmart comp sales down 4.4% in April (.vs. expected flat), Kohls down 7.7% .vs. 6.6% expected.

Abercrombie and Fitch said their same-store sales were down a whopping fifteen percent. Federated posted a 2.2% decrease, and expects May to be down as well. Gap reported sales down 16%.

Target reported same-store sales down 6.1%, a miss as well.

(Source)

Gee, but we don't have a soft consumer, credit increase is good, and there's no actual loss in employment because of the "black box", right?

Ooooookkkkkkk....

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