Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more.
"... Got the latest “transports” data?
- Class 8 new truck orders at the lowest level since August 2010 in both absolute and rate of change terms (-56% y/y)
- NA total commodity carloads originated continues tracking down over -5% Y/Y since March 2015 – no bounce whatsoever
- Commodity carloads down -11% y/y. Largest commodity carload declines in Petroleum products (-22%) and Coal (-27%) which are obvious. Other areas of weakness are forest products (-7.5%), Metals (-6.1%), minerals (-3.6%), Farm/Food products (-3.4%)"
So maybe the Fed should “raise rates” today. That’s neither an empty nor a clever theory. That would just be dumb.