(As of 7:10 am PST)
When can good news be bad
news? The Chicago PMI number, a key
measure of economic activity, came in higher than expectations and showing good
positive expansion. It is another indication
that ‘main street’ is continuing to recover.
But if recovery looks too robust, it is a danger to future quantitative
easing by the Federal Reserve. Markets
have come to rely on easy money Fed Policy for growth in the last few years and
as the stimulus is withdrawn there will certainly be withdrawal pains in the
form of market volatility and negativity.
Gold was down along with oil this morning as the dollar strengthened
against most other currencies. Interest
rates are stable, holding at monthly highs.
Asia markets were mixed and Europe is down after a string of negative
economic reports. Look for a mildly
volatile market today with worries about Quantitative Easing reductions pushing
markets lower at the end.
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