Joining the trifecta of reporting (and beating) banks, Wells Fargo also reported better than expected Q2 EPS of $1.07 (exp. $1.01) despite missing on the top line (revenue of $22.2bn vs exp.
Following May's disappointing MoM collapse in industrial production growth, economists had hoped for a modest 0.3% rebound and were pleasantly surprised with 0.4% gain in June (and upward revision for May).
However, year-over-year growth in industrial production slowed from +2.1% to +2.0% YoY - its first slowdown since January.
For the 4th month in a row, CPI missed expectations (unchanged MoM vs expectations of a modest 0.1% rise). Across the board consumer price rises disappointed economists' guesses with Core CPI tumbling to just 1.7% YoY - the lowest since Jan 2015...
Energy prices fell 1.6% MoM and were the biggest drag on CPI; Apparel and Transportation (airfares) also fell MoM.
The last time CPI followed this trajectory, Bernanke unleased QE-infinity...
But this time The Fed is hiking rates?
Authored by Bonner & Partners' Bill Bonner, annotated by Acting-Man's Pater Tenebrarum,
Bent and Distorted
This morning, we are wondering: How dumb is the Fed?
The question was prompted by this comment by former Fed insider Chris Whalen at The Institutional Risk Analyst blog...
While JPM was quick to provide all the favorable data in its earnings presentation (and not so favorable when it comes to the sharp drop in its markets sales and trading division) one thing was conspicuously missing: the slide on "Mortgage Banking And Card Services" which has traditionally been part of the bank's earnings presentation and was certainly featured prominently last quarter.