Last week there were many more NEGATIVE than POSITIVE developments, and the many stock markets around the world declined.

Below is a succinct list of last week’s events:

Positives:
1) Retail Sales in March were good, notwithstanding rising gasoline and food prices
2) NY mfr’g survey in April rises to 1-year high
3) Apr Univ. of Michigan confidence bounces 2 pts from lowest level since Nov ’09 with still elevated 1 yr inflation expectations
4) China reports stronger than expected Q1 GDP, retail sales and IP

Negatives:
1) US CPI rises 2.7% y/o/y, most since Dec ’09 and Import Prices rise 9.7% y/o/y
2) Initial Jobless Claims rise back above 400k for the 1st time since early March
3) Higher than expected trade deficit and lower than expected rise in business inventories send Q1 GDP forecasts down to around 2%
4) NFIB small business optimism index falls to 5 month low as price pressures rise, and plans to hire, expectations of better economy and better sales fall. Cap ex component did rise
5) Soft start to Q1 earnings season as seen with AA, JPM, GOOG and BAC
6) Yields in Greece, Portugal, Ireland and Spain all rise as clock ticks on inevitable timing of Greek debt restructuring. Greek 2 yr yield up 225 bps on the week and CDS goes to record high
7) Gold at record high, direct indictment of Fed policy
8) China reports stronger than expected higher than forecasted CPI and PPI.

Source: The Big Picture