Saturday, December 24, 2011

SHLD may have a long ways to go - down.

Global easing continues as more cowbell is delivered in Russia, as the nation's central bank cut interest rates for the first time in 18 months.

The yield on the 10-year Italian bond is now at 7.077%.

November durable goods orders rose by 0.3% (excluding transports), slightly below expectations of +0.4%. October was revised modestly higher.

Non-defense capital goods orders (excluding aircraft) were very disappointing, falling by 1.2% against consensus for a gain of 1.0%. October was also revised higher here.

Shipments fell and inventories rose, so the inventory-to-shipment ratio increased to the highest level in two and a half years.

These capital spending reads should be viewed as a negative to risk assets, as they were recorded into the teeth (and expiration) of the 100% tax credit (which is halved in 2012).