(As of 7:16 am PST)
Stocks are getting a nice bounce today after several consecutive
days of losses, the most for the S&P500 on the year. Incoming data showed jobless claims falling
last week and hovering just above a 6 year low.
Also, the third and final review of GDP for the second quarter
showed growth unchanged at a 2.5% annualized pace. It appears most analysts expected a very
slight pick up in growth, so perhaps the miss is playing into a "bad news is
good news" scenario on the market today.
US growth has been sluggish since the recession, expanding at roughly a
2% rate over the past several years and perhaps an unchanged number for growth
in the second quarter supports the view of the Fed continuing its asset
purchase program. In any case, the
market is enjoying a nice rebound after several days of losses. Other data showed pending home
sales fell 1.6% in August while 30-year mortgage rates dropped to 4.32% in the
most recent week. European markets
hovered near the unchanged line most of the day but have picked up momentum as
the US stock market has in early trading.
Asian markets were mixed on the day.
Interest rates are higher as the US dollar rose. Gold is down and oil is up slightly. Expect
gains to deteriorate as the day progresses, as investors remain fixated on the
debt ceiling debate and the taper.
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