Wednesday, December 4, 2013

Economic Journal - Wednesday, 12/4/2013

(As of 7:20 am PST)
 
US stocks opened lower today with the Dow Jones and S&P500 on pace for a fourth consecutive day of losses.  A slew of economic data has left investors scratching their heads.  The market opened to good data on jobs as payroll processor ADP reported 215,000 private sector jobs were added in November, much higher than the 178,000 expected.  Also, a positive report from the Commerce Dept. showed the nation’s trade deficit fell 5.4% in November.  Initial market reaction at the open was negative as ‘taper fears’ carried over from yesterday and were supported by a better than expected jobs report.  At 10 am EST, another round of data hit the wires which bolstered stocks.  Housing data showed new home sales leaping in October by 25.4%.  Also, the ISM non-manufacturing survey showed activity slowed in November, but still was in expansionary territory.  The housing data pulled all 3 major indexes back into the green.  Gold and oil are both higher and interest rates ticked up with the 10 yr. treasury yielding 2.84%.  It’s difficult to tell where the momentum is today as investors try to shake out whether “good news is bad” and what an improving economy means for the stock market.

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