‘Soft landing’ narrative nuked: PPI collapsing, nearly 60% of CPI components in deflation, retail sales trending negative. Profit Recession just getting started with 34 companies reporting -6.7% so far…

Non existent credibility cause the Fed is again out of synch with the market and the data.
Yields dropping as a new Fed policy error of staying too high too long would kill any soft landing narrative.
Powell's got some explaining to do. pic.twitter.com/GVsDvjIqab

— Sven Henrich (@NorthmanTrader) January 18, 2023

U.S PPI (MOM) (DEC) ACTUAL: -0.5% VS 0.3% PREVIOUS; EST -0.1%

U.S PPI (YOY) (DEC) ACTUAL: 6.2% VS 7.4% PREVIOUS; EST 6.8%

U.S CORE PPI (MOM) (DEC) ACTUAL: 0.1% VS 0.4% PREIVOUS; EST 0.1%

U.S CORE PPI (YOY) (DEC) ACTUAL: 5.5% VS 6.2% PREVIOUS; EST 5.7%

— First Squawk (@FirstSquawk) January 18, 2023

EPS: Profit Recession just getting started with 34 companies reporting -6.7% so far… pic.twitter.com/avwLikubBr

— Keith McCullough (@KeithMcCullough) January 18, 2023

The Empire State survey laid another egg, coming in at 32.9 for January. This is akin to the old readings from the Global Financial Crisis.

With the S&P 500 trading at 4,000, the Street anticipates that its earnings will rise from $200 in 2022 to $225 in 2023.

I disagree. pic.twitter.com/In7rCrlECQ

— Jeff Weniger (@JeffWeniger) January 17, 2023

If Empire new orders index is any indication of where ISM new orders will come on Feb. 1st, and there certainly appears to be a correlation, it's going to be ugly. -31.1 is the 3rd worst monthly number since the survey was created in 2001. pic.twitter.com/2T15Bq0CYR

— Randy Woodward (@TheBondFreak) January 17, 2023

The 10Y is consolidating before its final move upward to 5%. This will be the final nail in the coffin for this market. I expect the S&P 500 to plunge to 2000, the Russell 2000 to drop to 1000, and the Nasdaq 100 to fall to 6500.

— HOZ (@MFHoz) January 17, 2023

Former Secretary of Labor Robert Reich believes the Federal Reserve’s rate hikes are not working and said the central bank should stop believing it can easily stop profit-price inflation by hiking interest rates.

— unusual_whales (@unusual_whales) January 18, 2023

Can you hear me now, Jerome? pic.twitter.com/J5DWzidcWR

— Danielle DiMartino Booth (@DiMartinoBooth) January 18, 2023

‘Soft Landing’ Narrative Nuked As US Industrial Production Plunges In December And New York Biz Leaders Survey Crashes To -21.4 (US Treasury 10Y Yield Drops -14.1 Basis Points)

Soft landing for the US economy? It is looking less and less likely. The bond market (10-year Treasury yield) just shed -14.1 basis points. As I always told my investments students, any 10 basis point shift in the 10-year Treasury yield is significant.

Let’s start wit the US business leaders survey of current conditions. It just crashed to -21.4

Then we have US industrial production, down -0.7% in December. And is up only 1.65% year-over-year as M2 Money growth stalls.

Press Sec: “Biden’ s economic plan is indeed working,” 🤡 pic.twitter.com/4MI79OXFb5

— Clown World ™ 🤡 (@ClownWorld_) January 17, 2023

The housing market is crashing and mainstream media is not reporting on it…