Friday, March 15, 2013

Economic Journal - Friday, 3/15/2013

(As of 7:19 am PST)
 
Markets are lower this morning after yesterday saw the Dow adding to its record run and the S&P500 closing within 2 points of its all-time record high.  Economic reports were mixed this morning.  Consumer prices rose 0.7% in February led by a surge in gasoline prices.  However, looking at the core CPI (the figure used by the Fed to determine inflation targets) which strips out volatile food and energy prices, prices rose a scant 0.2%, in line with expectations.  Industrial production rose 0.7% after a weak report in January and capacity utilization, which measures output, rose to its highest level since 2008.  The Empire State index, which surveys manufacturers in the New York region slipped slightly but remained positive for the second straight month.  Despite the relatively positive data, investors began selling early.  Adding to the downward pressure was a disappointing consumer sentiment report which showed sentiment dropping to its lowest level since December 2011.  Stocks in Europe were lower following US data, while Asian markets finished mostly higher after yesterday’s gains on Wall Street.  Gold and oil are up while interest rates slipped slightly.   With the mixed data and triple witching (a day in which stock-index futures, stock-index options, and stock options contracts expire simultaneously), investors may be finding this a good day to trim out some profits after these record highs.

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