FRIDAY 2/27/15; Greece Riots; Venezuela Turmoil; Congress Faces Deadline to Fund DHS; GDP; Chicago PMI; Consumer Sentiment; EOM; COMPQ 15-Year Record High

Asian indexes are mixed with the NIKK printing another record 15-year high. Japan’s consumer price inflation drops for six straight months at +0.2% below the +0.5% at the end of last year. The BOJ is not making progress towards the +2% inflation goal despite the ongoing obscene Keynesian spending and is actually losing ground. On the bright side, Japan’s industrial output jumps +4% the most in years handily trouncing the +2.4% expectations. The industrial production strength indicates 



















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Russia and oil and gas giant Gazprom threaten to cut the gas supply to Ukraine since more payments are due. Gazprom may not complain too loudly since the cash flow and payments are needed considering the dire shape of the Russian economy. If gas is shut off so is the income. Russia, Ukraine and Europe are intertwined economically; each region is cutting its nose to spite its overall face.

An interesting divergence this week occurs with stocks printing new all-time record highs with traders cheering for Nasdaq 5K but earnings are turning negative year on year. Traders ignore the developing trend in lower earnings and instead party like its 1999.

At 7 PM, deliberations continue in Congress to avert a shutdown in DHS now only five hours away. About an hour later, the House passes a bill to fund the Department of Homeland Security for one week’s time and President Obama signs the bill. Nothing changes. The political Einstein’s will continue fighting over the coming days and must come to an agreement by this time next week or funding to DHS will stop. This situation rises due to the president acting unilaterally changing immigration law. The funding of DHS is a tool the republican-controlled Congress is using to rein back the presidents independent decrees. The stock market typically trades weak when Congress is in session and the ongoing DHS drama and uncertainty should act as a drag on equities next week.