(As of 7:19 am PST)
Conflicting economic data has
stocks broadly lower this morning adding to sharp weekly losses. Jobless claims were the lowest since 2007, a
positive sign for the economy, but a reminder that the Federal Reserve’s tapering
program is just around the corner.
Worries of what will happen to interest rates and the stock market when
the Fed stops or lowers its bond buying program has created great anxiety among
investors. Negative profit reports or
reduced projections from Wal-Mart, Cisco and Netapp have added to large market
losses. The Philly Fed Index came in
well below expectations and other economic data this morning has also been
leaning to the negative. An unusual
pattern exists in the fact that ‘good is bad’ and ‘bad is good’, at least when
it comes to the stock market. ‘Yes, we
need more stimulus!’ ‘No, it’s time to
reduce or eliminate stimulus!’ Every
report takes on a different meaning. In
the meantime oil is up, gold is down and interest rate yields are
climbing. Expect increasing volatility and
for negative momentum to persist.
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