Capital Commerce

5 Bits of Good News on the Un-Recession

By James Pethokoukis

Posted: May 20, 2008

Michael Darda of MKM Partners reels off a list of positive economic indicators:

1) The Conference Board's Index of Leading Economic Indicators rose for the second consecutive month in April after a five month string of negative readings that lasted from October though February.

2) The economically-sensitive Dow Jones Transport Average hit new, all-time highs today on both an absolute and relative (to the DJIA) basis.

3) Emerging market stocks are up 24% since March 17 and at all-time highs relative to the S&P 500—a signal that the developed economy slowdown isn't likely to take too large a toll on the emerging world.

4) Swap and paper bill spreads have collapsed, pointing to a thawing in credit markets (and faster growth down the road).

5) Finished goods and services prices (excluding energy) are rising faster than unit labor costs, a forward-looking indicator of profits.

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Capital Commerce

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