Market Analysis

Despite a NY region manufacturing report which was much better than expected and a December industrial production report that hit expectations, the stock market is down today and bonds are benefiting as funds are moving from stocks to bonds.

The economic reports of the day showed the the December Consumer Price Index (CPI) at .1% increase which matched expectations.  The Core Rate (excluding food and energy) was down also up .1% vs expectations of a .2% increase.  January's Empire State (NY) Mfg Survey jumped to 15.92 vs expectations of an 11.25 reading and the New Orders component of the report surged to 20.48 from 2.77 in December.  December's Industrial Production report showed a .6% increase as expected and Factory Utilization increase to 72% from 71.5% in November.  The University of Michigan's initial Consumer Sentiment Index for January came in a 72.8 which was slightly lower than the 73.8 expected value but still better than the 72.5 reading at the end of December.