(As of 7:20 am pacific)
Stocks are mixed this
morning following yesterday afternoons selloff as fiscal cliff discussions
have moved back in to a stalemate. A
bill, known as Boehner’s “Plan B” will go to the House for a vote today. Even if it were to pass both the House and
the Senate (which it almost certainly will not), President Obama has already said
he would veto it. After negotiations appeared to be making
progress earlier in the week, congressional leaders dug in once again yesterday,
with Republicans calling for more cuts and Democrats more revenues. Despite the cloud of the fiscal cliff looming
over the markets, some strong economic data continue to show signs of improvement. Existing home sales rose to the highest rate
since November 2009 this month, and the final reading of Q3 GDP showed the US
economy growing at a 3.1% annualized rate.
US budget negotiations are the focus for all international markets. Europe and Asia are mostly lower. Gold is down 1% today and oil is also
down. After spiking yesterday, volatility
is under control today. Volume will
likely slow down tomorrow as traders head in to the long holiday weekend. However, as long as uncertainty remains over
the fiscal cliff, expect the final week of the year to be a bumpy one.
