Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Week in Review: 6/13- 6/17

Stocks ended a volatile week mostly flat as positive new on the Greece situation offset further worries of a global economic slowdown. On Thursday it was reported that the Greek prime minister had appointed a new finance minister and had garnered more support from his cabinet. This is critical because the Greek government needs to pass significant budget cuts in order to receive further bailout money from the EU. The next day, German Prime Minister Merkel stated she is committed to avoiding a Greek default. 
It was a busy week for economic data which came in mixed. On the inflation front headline PPI (7%) and CPI (3.6%) increased y/y indicating some inflationary pressure.   In the manufacturing sector the data was poor with the Empire and Philly fed surveys underwhelming significantly and industrial production and business inventories coming in slightly lower. In the consumer space, retail sales beat (-.2 vs -.3e) but were still negative and consumer sentiment (71.8 vs. 74.5) was disappointing. One positive was in the housing sector as housing starts were reported at 560K when 547K was expected. Additionally leading indicators were strong at .8% vs. .2% expected. Generally speaking, the data shows the economy is sluggish and in a phase of below average growth. 
Commodities, especially oil ended the week in the red. On one hand, they were hurt by a stronger dollar caused by risk aversion and a weaker euro. Second, the Greek situation and poor economic data has traders worried demand will decrease. Ominous signs continued to drift out of the treasury market as 2 year yields decreased for the 10th week in a row. Treasuries tend to be more sensitive to economic and geopolitical events then stocks so lower yields indicate fear and risk aversion in the marketplace. 
In the weeks ahead it will be important to watch for a solution to the Greek problem. A default would be disastrous and an effective solution would help stocks rally. However, stocks should remain range bound for the remainder of the year.  There are too many conflicting data points of both sides of the spectrum
Also, looking longer term, the US is entering into an environment where monetary policy is easing and fiscal policy is tightening- both of which will put a damper on economic growth.
Major Indexes Week of 5/16 to 5/20
 
YTD Start
Week Start
Week Close
Week %
YTD %
S&P
1257
1271
1271
0.00%
1.11%
DJIA
11576
11,952
12004
0.44%
3.70%
NASDAQ
2653
2,643
2616
-1.02%
-1.39%
Russell
783.9
779.54
781.75
0.28%
-0.27%
My Account
67,304.27
69,979
69,865
-0.16%
3.80%
FICC Week of 5/9 to 5/13
 
Start
End
% Change
Euro/Dollar
1.435
1.4287
-0.44%
Oil
99.29
93.01
-6.32%
CRB ETF
49.08
48.03
-2.14%
10 Year
2.95%
2.94%
 


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.