Stocks dropped and bonds rallied modestly as the early subscribers received the Chicago PMI which missed expectations significantly. Seemingly, with taper in place, bad news is bad news as the 59.1 print (vs a 60.8 exp) is the biggest miss in 6 months. Under the covers things are even worse with the lowest employment index since April. Inventories also collapsed (by the most since 1977) which is a problem since New orders and production also plunged suggesting the post-government shutdown ‘surprise’ GDP-enhancing inventory-build is entirely a one-off event (as we noted here).
Biggest miss in 6 months…
Inventories collapsed the most since 1977…
and employment dumps…
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/MTL9JIFd97s/story01.htm Tyler Durden