Crude Oil still near all time highs irrespective of the comments from Saudi
Arabia over the weekend. Too little too late is the feeling in the oil pits. And
what does Secretary Paulson say tonight?
"TREASURY SEC PAULSON: HIGH OIL PRICES COULD PROLONG THE US
ECONOMIC SLOWDOWN."
That has to be one of the most stupid comments to come from this bozo in at
least a week. Gee, no kidding Mr. Paulson. Do you really think high inflation
might hurt the economy? Is it a federal crime to call a Presidential cabinet
member an idiot?
Tomorrow begins the FOMC meeting with an announcement on Wednesday.
Everything will be on what they ’say’ as it is widely expected they won’t do
anything to the rates. But what they say about the economy and inflation will be
key for the currency market and in turn equities. As we have written numerous
times, the Feds are caught between a rock and a hard place. And they were not
put there by outside forces, they did this all by themselves. There is a price
to pay for cutting the fed funds rate substantially in the face of rising
commodity prices. Their interest rate cuts have done little, if anything, to
stimulate the economy. And when taken into context with the rising inflation
pressures, they have actually made the overall economy worse.
The economic news begins to pick up the pace starting tomorrow:
(all times US EST)
Tuesday
9:00 am: April S&P/CS Home Price Index (last 172.2), April S&P/CS
Composite-20 y/y (last –14.4%)
10:00 am: June Consumer Confidence (last 57.2), June Richmond Fed
Manufacturing Index (last -3), April Housing Price Index m/m (last –0.4%)
1:00 pm: Treasury’s Two-Year Note Auction
Earnings:
Before the Open: KR.
After the Close: COMS, AVAV, APOG, DRI, FSII, FUL, JBL, SONC
Wednesday
8:30 am: May Durable Goods Orders (last –0.5%, ex-transport 2.5%)
10:00 am: May New Home Sales (last 526K, m/m 3.3%)
10:35 am: Crude Oil/Gasoline/Distillate Inventories
2:15 pm: FOMC Rate Decision
Earnings:
Before the Open: AM, GIS, ISLE, MON, SMSC.
