Feb. Housing & Manufacturing Reports, Preview of Monday's statistics.

[Thomas_Chippendale]

A Preview of some very discouraging results for February:

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1c7_pLIQtUY&refer=worldwide

-New construction down, foreclosures up, residential home values down.

- Permits for future construction down, and indications are that more manufacturers are not operating at capacity.

- The weak dollar is increasing export sales, but likely not by a significant enough amount to impact the overall economy.

Discount-rate Cut Article:
http://www.bloomberg.com/apps/news?pid=20601087&refer=worldwide&sid=asg0H5x.VQ4g

-Interesting note, this mentions a new agency directly lending in return for 'collateral':
"From tomorrow, primary dealers will be able to borrow at the rate under a new lending facility, to be in place for at least six months, the Fed said. The Fed will accept a ``broad range'' of investment-grade collateral."

Market Reaction in Asia:
http://www.bloomberg.com/apps/news?pid=20601087&refer=worldwide&sid=aMBLKGKXuX_M

The Bear Stearns Article:
http://www.bloomberg.com/apps/news?pid=20601087&refer=worldwide&sid=a.kwMtvHsOL0

 

[danberkeley]

same ol', same ol'. except the number will be worse/

 

[Corydoras]

The Fed will accept a ``broad range'' of investment-grade collateral."

I'll say. They'd do better hiring kids to pick cans out of garbage in a third-world country.

 

[Thomas_Chippendale]

I probably should have included these bits, from the Bloomberg article on the Monday reports:

"Builders in the U.S. broke ground in February on the fewest houses in 17 years"

"The construction report may show permits, an indicator of future building, dropped to a 1.02 million annual pace, also a 17-year low."

"Home foreclosure filings jumped 60 percent and bank seizures more than doubled in February from the same month last year as rates on adjustable mortgages rose and property owners were unable to sell or refinance, according to RealtyTrac Inc., a seller of foreclosure data."

"The central bank will lower the benchmark rate by a full percentage point to 2 percent this week, according to futures trading."

And finally, a "we don't know what the fuck is going to happen" moment from:
" 'The market's too challenging to make accurate forecasts for fiscal '08,' Chief Executive Officer Ara Hovnanian said on a March 11 conference call with analysts."

Her confidence-inspiring statement might explain the results of her company:
"Hovnanian Enterprises Inc., New Jersey's biggest homebuilder, last week reached an agreement with banks on new lending terms after slowing home sales made it harder to generate cash. Hovnanian also reported its sixth straight quarterly loss."

So yep, expect lovely downward numbers on Monday morning, and then perhaps a rebound when the Fed cuts rates/traders buy on under-valued firms hit by individuals panicking.