Showing posts from February, 2021

Economic Reports: Week Ending Feb. 5, 2021

January manufacturing remains solidly in expansion, but price pressures continue to ramp up The January Institute for Supply Management (ISM) Manufacturing Index showed manufacturing growth (a reading above 50) decelerated more than anticipated. The index declined to 58.7 from December's downwardly revised 60.5 level, and versus the Bloomberg consensus estimate of a dip to 60.0. This index came off the highest level since early 2018 as new orders and production growth declined but both figures remained north of 60, and employment moved modestly further into expansion territory. Prices remained elevated, rising 4.5 points to 82.1, a level not seen since April 2011, indicating continued supplier pricing power. The ISM said, "The manufacturing economy continued its recovery in January. Survey committee members reported that their companies and suppliers continue to operate in reconfigured factories, but absenteeism, short-term shutdowns to sanitize facilities and difficulties in

Regulation and stock trading

Yellen calls the regulators (Seeking Alpha) Although the "meme stock" trade continues to unwind , discussions over market volatility continue to ensue. Treasury Secretary Janet Yellen has called a meeting with the SEC, the Federal Reserve Board, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission to address the recent market frenzy involving GameStop (NYSE: GME ) and Robinhood. This comes after the SEC said it was investigating "manipulative trading activity," as well as actions taken to "unduly inhibit the ability to trade certain securities." Fine print: Yellen has requested an ethics waiver to hold the meeting after receiving more than $700,000 in speaking fees from Citadel Advisors, the financial empire run by Ken Griffin. Griffin also runs a hedge fund and controls Citadel Securities, a market maker that executes trades for Robinhood. What could happen? Likely nothing, but if the SEC were to act, it could pursue a seri