• 4 hours Russia Aims To Become World's Top Gold Producer
  • 20 hours Global Tech Stocks On Edge Over Trump TikTok Ban
  • 1 day Cobalt Squeeze Threatens The Electric Vehicle Boom
  • 2 days COVID Has Sparked A Surge In Cybercrime
  • 2 days Precious Metals Bulls Still Have Plenty Of Room To Run
  • 3 days The U.S. Has The Tech To Go Green, But Will It Use It?
  • 3 days Massive Losses Force Russian Commodities Giant To Slash Dividends
  • 4 days Markets Up On Stimulus Hope
  • 4 days UK To Invest In Europe's First Geothermal Lithium Recovery Plant
  • 5 days TikTok Takes Center Stage In US-China Tech War
  • 5 days Are Semiconductor Stocks Overvalued?
  • 6 days Jobs Report Doesn’t Say Much Amid COVID Uncertainty
  • 6 days Crypto FOMO Heats Up As Bitcoin Climbs Above $11,000
  • 7 days Aluminum Is Bouncing Back In China
  • 7 days The Deep-Sea Mining Debate
  • 8 days Markets Trending Down Despite Tech Blow-Out
  • 8 days Big Oil Battered On Dismal Earnings
  • 9 days Russian Billionaire Bails On Mid-Sized Gold Miner
  • 9 days Gold Stocks Gear Up For A Big Autumn
  • 10 days America Is Looking To Bring Nuclear Power To Space
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

4th Quarter GDPNow Forecast Sinks to +0.6 Percent; Fed Futures Target 1 Hike in 2016; Disastrous Data Recap

I have never seen the Atlanta Fed take as long to post a scheduled update to their GDP Forecast as they did today. Their forecast came out late this afternoon, but it did beat the market close.

GDPNow


Latest forecast -- January 15, 2016

The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2015 is 0.6 percent on January 15, down from 0.8 percent on January 8. The forecast for fourth quarter real consumer spending growth fell from 2.0 percent to 1.7 percent after this morning's retail sales report from the U.S. Census Bureau and the industrial production release from the Federal Reserve.


5 Disastrous Economic Reports From Today

  1. Inventory to Sales: Manufacturing Inventories Decline But Inventory-to-Sales Ratio Doesn't Budge; Another Recessionary Looking Chart
  2. Producer Prices: Producer Prices Decline More Than Expected, Services Disappoint; Oil Approaches $29
  3. Industrial Production: Industrial Production Numbers and Revisions Shockingly Bad; Autos Have Peaked
  4. Empire State Manufacturing: Empire State Manufacturing Index Posts Horrific -19.37, Lowest Reading Since April 2009
  5. Retail Sales: December Retail Sales Negative; Other Economic Data Horrid

That's likely the worst set of economic reports since the last recession.


Fed Futures Target 1 Hike in 2016

Following today's set of horrific reports, odds of rate hikes in 2016 dropped substantially. Fed Fund Futures analysis show the March hike odds shrank all the way to 31% from 55% last month.

Fed Futures Target 1 Hike in 2016

The first hike is now expected in July, but barely. And looking all the way out to December, the futures still suggest only one hike.

Fed Futures Target 1 Hike in 2016

Note the significant 33.9% chance of no more hikes for the entire year!

Nonetheless, a parade of Fed governors attempted to talk up the strength of the economy over the past few days, even today.

The market laughed in their face.

 

Back to homepage

Leave a comment

Leave a comment