Chillin' out till it needs to be funded
The FOMC meeting minutes were keenly awaited and delivered the inevitable verdict that shut the markets down and it transpired that many were still expecting a bigger and better QE3 despite the brilliant March Car sales. In Car Sales Chrysler climbed up again on a Y/Y comparison up 34% but it was mostly imports as Toyota and Nissan helped Honda sales into high gear and helped themselves. Ford was expected to go under in March but managed to stay up 5% more than last year leaving it with a 5 year best score and GM could not jump the 20% higher bars, markets unhappy with the 11% growth on Year but the company was still happier with the 180,000 cars it sold in 2012 March.
The Healthcare debates were silent this week as the Judges decide the verdict and if Judge Roberts gets to write the opinion. Romney on the other hand has not many hopes in Wisconsin but in DC, Santorum did not even make the ballot. DC , Wisconsin and Md., like Illinois before last week, will give Romney enough to take over the scene. In which case, Santorum’s going away present for him on Network Television, leaves things in bad taste. ( That is a negative ad , streaming video available on the web) As of Nine PM (ET) Romney has won Maryland and the 19 delegates from DC, across 600 with a couple of delegates from Wisconsin.
The one year auction closed at 0.185% yield and the 4 week one at 0.055% as the markets in bonds came back to the higher yields of last week after the compulsory FOMC reading. America’s borrowing 4 times the sums it borrowed a t the best times of the boom and it does not matter as inflation holds below 2% and US remains the only part of the Developed world growing substantively in 2012.
Apple of course had a good day again as analysts ( this one from Topeca) again underwrite Apple’s journey to a $1 Tln in market Capitalisation with the Topeca analyst putting a $1001 number today on the stock, but then when Apple lost $3 of the $10 it gained, NASDAQ was back in the red. Go Figure!
Inspite of today’s correction, Financials remain the key bet on the growth in the US and yes don’t forget your Easter shopping for this weekend. Update follows after Wisconsin result is printed. Three out of nine voting members are left without express denial of a QE3 possibility on the FOMC.