(As of 7:20 am PST)
The Dow’s winning streak is at
risk in early trading with the index down .25%, while the S&P and Nasdaq follow
suit. A positive retail sales report
suggested that consumers have not been as hard-pressed as expected by the
payroll tax increase and budget sequester that hit earlier this year. Retail sales increased 1.1% in February, ahead
of estimates. Although nearly half of
the gain was seen at the pump with rising gasoline prices, sales at other
retailers were strong and added to the momentum we’ve been seeing in the
economy. Investors shrugged off the
positive report, turning to the budget battle heating up in the halls of
Washington. Democrats are expected to
roll out their budget proposal today in response to the Republican plan that
was presented yesterday. Investors are
also keeping their eyes on China as property market concerns continue to weigh
down markets. Chinese markets pulled
down the broader Asian markets in trading today. Europe added to the selling as Italian bond
yields rose sharply in their first auction since Fitch’s recent downgrade. Oil and gold are up, as are interest
rates. It appears the momentum may be to
the downside this morning as investors consolidate gains from the Dow’s record
run.
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