Industrials, Semiconductors, Aluminium Manufacturers, Natural Gas Producers, Shipping And Basic Materials Fall Lower On The Continuing Failure Of Neoliberalism’s Seigniorage

Financial Market Report for May 17, 2011

1) …The Continuing Failure of Neoliberalism is seen in Bloomberg’s report Production Stalls on Autos, Housing Starts Fall. Industrial production in the U.S. unexpectedly stalled in April and housing starts dropped, posing hurdles to a rebound from the first quarter’s economic slowdown. Output at factories, mines and utilities was unchanged after a 0.7 percent gain in March, figures from the Federal Reserve showed today, led by a drop in auto production after parts supplies were disrupted by the earthquake and tsunami in Japan. Work began on 523,000 houses at an annual pace, down 11 percent, as tornadoes and floods in the South shut down construction sites.  

The ongoing failure of Neoliberalism’s Seigniorage and Quantitative Easing Exhaustion. is seen in
Aluminum Manufacturers, ALUM, -2.0% … Natural Gas Partnership, AMJ, -1.7%  
Shipping, SEA, -1.4% Bloomberg reports The Baltic Dry Index, $BDI, a measure of commodity shipping costs, had a sixth consecutive fall on fleet expansion and weaker demand to haul grain cargoes. The index fell 1.3% to 1,274 points today. That’s the lowest since April 28.The “grain season is starting to wane out of South America,” Peter Norfolk, an analyst at Freight Investor Serviced Ltd. in London, said. There’s a “relentless” supply of capesizes being delivered to owners and insufficient iron-ore cargoes to match it, he said.
Semiconductors, XSD, -1.2% … Industrial, IYJ, -1.2% … Materials, XLB, -1.2%

3) …. Utilities, XLU, rose to a new rally high on lower interest rates. And Bonds, BND, continued their rally as the Interest Rate of the 10 Year US Government Note, $TNX, fell lower. Of note Junk Bonds, JNK, failed to participate in the rally, with LQD, BLV, MUB, ZROZ, MBB, TLT, IEI, and EDV rising

4) … Stocks falling lower included:
Retail: Ulta Salon Cosmetics And Fragrances, ULTA,
Transportation: Railroad: Rail America, RA,
Technology: Turbines: Precision Cast Parts, PCP,
Technology: Active Power, ACPW,
Technology: Instruments: Mettler Toledo Intl, MTD,
Communications Equipment: Alcatel Lucent, ALU
Consumer Discretionary: Zip Car, ZIP,
The Morgan Stanley Cyclical Index Transportation Component: Goodyear Tire. GT.
The Morgan Stanley Cyclical Index: Basic Materials Component: Alcoa Aluminum, AA
The Morgan Stanley Cyclical Index: Industrial Component: Eaton. ETN.
The Morgan Stanley Cyclicals Index: Packaging: Temple Inland, TIN,
The Morgan Stanley Cyclical Index: Agriculture Industry Component: Deere, DE
Agriculture Industry: CNH Global, CHN,
Agriculture Retail Company: Titan Machinery, TITN,  
Basic Materials: Natural Gas Partnership: DCP Midstream Partners, DPM,
Basic Materials: Natural Gas: Chesapeake Energy, CHK
LED Manufacturer: CREE Inc, CREE,
Health Care: Long Term Health Care Facility: Sunrise Senior Living, SRZ,
Consumer Goods: Consumer Brands: Iconix Brand Group, ICON,
Consumer Goods: Automobile Parts: WABCO Holdings, WBC
Consumer Goods: Automobile Parts: Tenneco Automotive, TEN,
Consumer Goods: Automobile Parts: TRW Automotive Holdings,TRW,
Consumer Goods: Automobile Parts: Titan. TWI.
Industrial: Machine Tools: Timken, TKR,
Industrial: Hydraulic Equipment: Parker Hannifin, PH,
Industrial: Diversified Machinery: Actuant Corporation,  ATU
Industrial MRO Services: DXP Enterprises, DXPE,
Industrial: Diversified Equipment: Cummins. CMI,
Industrial: Construction Equipment: Caterpillar, CAT,
Industrial: Small Tools: Welding and cutting tools: Lincoln Electric, LECO,
Industrial: Machine Tools: Flow Intl, FLOW,
Construction Equipment: Terex,TEX,
Consumer Services: Restaurant: Middleby, MIDD
Consumer Goods: SCP Pool, POOL,
Industrial: Design And Build: Foster Wheeler, FWLT,
Industrial: Design And Build: KBR Inc, KBR,
Consumer Discretionary: Entertainment: Cedar Fair L.P., FUN,
Consumer Goods: Clean Technology: Batteries Exide Technologies, XIDE
Office Supplies: ACCO Brands,ABD,
Semiconductors, SanDisk, SNDK
Semiconductors, Micron, MU
Semiconductors, Texas Instruments, TXN
Financial Firm: Australian Bank: Westpac Banking, WBK

5) … Will an Iron Chancellor, such as Herman Van Rompuy, and an Adept Banker, such as Mario Draghi Establish Regional European Economic Governance to provide order and moneyness from a soon coming investment flameout caused by the fall of world currencies and the collapse of sovereign debt?

Economic Policy Journal reports  EuroZone Endorses Draghi to Become Next ECB President
The ministers from the 17 nations that use the euro endorsed former vice-chairman of Goldman Sachs International, Mario Draghi, 63, to take over as head of the European Central Bankin November, Luxembourg’s Jean- Claude Juncker, who leads the group, told reporters in Brussels late yesterday. ECB President Jean-Claude Trichet’s eight-year term ends on Oct. 31. Juncker continued: [Draghi] is a central banker who has proven throughout his career that he holds the principles of the euro dear. He is a man who brings together all the necessary qualities to be a worthy successor to Jean-Claude Trichet, who was an eminent president.  Following the vote by European Union finance ministers, the nomination will be forwarded to the European Parliament so that EU leaders can make a final decision in June.

Failure of Neoliberalism, Neoliberalism, Quantitative Easing Exhaustion, Seigniorage, The Seignior, The Sovereign, European Economic Governance, Mario Draghi


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