Friday, February 22, 2013

Economic Journal - Friday, 2/22/2013

(As of 7:09 am PST)
 
After an early surge out of the gate this morning, stocks are giving back gains quickly.  It is a mild day for economic news and profit reports are none too exciting.  The payroll tax increase seems to be taking a big bite out of consumer spending this year as retailers are noting flat sales.  Gold is slightly lower and oil slightly higher.  Interest rates are stable.  Lacking any strong reason to buy, investors are sitting on the sidelines.  The automatic government budget cuts (the sequester), coming on March 1st, are looming larger.  Political negotiations to modify the spending cuts are going nowhere.  Uncertainty is a bad thing for markets and could weigh on market performance for the coming week.  International reports are slightly positive.

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