The industrial production slippage of 0.6% contradicts NY Empire State Index of 22.9 –how will stocks, bonds, gold and dollar behave?
Marla Guthrie
Oct. 17, 2006

The industrial production fell 0.6%. It is the physical output of the nation's factories, mines, and utilities. Utility production, which can be quite volatile due to swings in the weather. That is exactly what happened. The manufacturing output part was excellent while the overall index took a slump as temperature moderated, people went outside taking advantage of lower gasoline prices.

Manufacturing part of the economy is actually accelerating without too much pressure on the inflation front. The stock market advance and NY Empire State Index reading of 22.9 also confirm that.

Bonds can get hurt while dollar can ride higher here because of higher rate expectation. When you add these to core PPI of staggering 0.6% - the picture becomes clearer.

Gold can go sideways because of strength in dollar and Asian demand which can counter balance each other. Stocks though can falter because stock market is normally ahead of the curve and is predicting what will happen six months later.

The industrial production slippage of 0.6% contradicts NY Empire State Index of 22.9 –how will stocks, bonds, gold and dollar behave?
Marla Guthrie
Stocks though can falter because stock market is normally ahead of the curve and is predicting what will happen six months later.
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Producer Price Index fell amazing 1.3% while core PPI shot up 0.6% - what does that mean for economy, dollar, bonds and stocks?
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A massive drop in Producer Price Index shows interesting correlation between inflation, eonomy, bonds, stocks and gold
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