Friday, May 16, 2014

Economic Journal - Friday, 5/16/2014

(As of 7:20 am PST)
 
Stock futures were higher prior to today’s open as investors cheered positive housing data, but momentum has quickly shifted to the downside as the major averages move lower.  Housing data released prior to today’s open surprised investors as new housing starts jumped in April to the fastest pace in 5 months.  Building permits (a sign of future demand) also came in better than expected.  Gains were short lived however, after a report from the Univ. of Michigan and Thomson Reuter’s showed consumer sentiment falling well below expectations.  After hitting record highs earlier in the week, markets are now on track to finish this volatile week with weekly losses.  Concerns around the Ukraine-Russia crisis, stalling growth around the globe, and uninspiring economic data at home has aided in the cautious tone this week.  After many traders were calling for a breakout at these current levels, many are now left wondering how much higher this market can go.

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