(As of 7:27 am pacific)
Stocks are accelerating to the downside this morning as
economic reports are fueling global growth concern and investors seem antsy
ahead of Fed Chairman Ben Bernanke’s speech tomorrow. In the US, the number of people applying for jobless
claims was unchanged last week. Claims
have hovered at the same level for the past 5 weeks, showing signs that the
labor market is sputtering. On a
positive note, consumer spending rose in July, for the biggest monthly increase
since February and personal income also rose for the 3rd straight
month. Falling gas prices in the month
of July most likely aided in putting extra spending dollars in the pockets of
taxpayers. The reports weren’t enough
for stocks as reports out of Europe and Asia sent markets retreating. Economic sentiment throughout the euro-zone
fell to a 3 yr. low and German unemployment edged up ahead of
expectations. Asian stocks saw a sharp
selloff today as well, as Japan’s retail sales turned negative in July, falling
0.8% from a year prior. It was the first
drop since November 2011. Commodity
prices also weighed on the markets with oil down and gold flat. The US dollar is mixed this morning and
interest rates continue to fall as investors are flocking to the safety of the
treasury today. The mood seems to have
changed in the market ahead of tomorrow’s Fed conference. Expectations are changing for Fed Chairman
Ben Bernanke to announce any plans for new stimulus programs. With weakening global growth, the debt crisis
in Europe, and the fiscal cliff looming, many are expecting Bernanke to hold on to
taking action until we really need
it.
