(As of 7:25 am pacific)
A positive surprise in a report on US productivity has offset somewhat negative
global news this morning. A
disconcerting revenue and profit warning from Federal Express was a downer, not
only because of the micro view of the stock itself, but the fact that the
warning was due to the global slowdown in manufacturing. Gold and oil are flat as are interest
rates. It is possible that as the day
wears on, the global slowdown fears will give way to more optimism on the
possibility of more quantitative easing.
While globally things look pretty dismal, the rise in productivity of
2.2% in the US may be a sign that the US economy is pulling out of its
doldrums. If that report were to be
coupled by more good news on real estate or a positive surprise on the employment
front later in the week, it could spark a significant rally. In a similar pattern to yesterday, look for
the market to recover from early losses and finish mixed to moderately higher.
