US wholesale inventories

The US Wholesale Inventories are due at 10:00 AM. The expectation is for a gain of 0.4%.  This is on the back of a 1.4% gains last month.   Although inventories have been increasing, they have been absorbed by liquidation through sales.  As a result, the Stockpiles (or inventory to sales ratio) is near historic low levels.  Manufacturers have been able to control the level of inventory to date. 

Sales jumped 1.4% as well. Stockpile remained at record low levels at 1.09 months at the current sales pace.  This eases concerns of too much supply as the economy slows. 

Stockpiles were led by a 8.8% increase in petroleum the largest since Jan 2006.  Metal increasad by 2.9%.  Auto dealers inventories increased by 2.5%. 

This was higher than expected.

At 10:00 the one and only US release will be announced when wholesale inventories for January is released.  This statistic shows the change in the amount of inventories held by wholesalers.  When inventories are low it is su

Rise more than expected to 1.1%. 

Wholesale inventories is the value of goods held by wholesalers. A larger number in this economy refects unwanted inventories by wholesalers probably as a result of weak consumer demand.  This should be dollar bearish and cause the stock market to decline. However, increases in inventory give a boost to current GDP.  The caveat is wholesalers do not need to replenish inventories if they already have them.  So the gains today are normally reversed going forward.

Expectations are for a rise of 0.3% which is in line with the recent trend