Friday, May 30, 2014

Economic Journal - Friday, 5/30/2014

(As of 7:30 am PST)

US stocks edged lower on Friday, but the broad averages remained on pace for weekly and monthly gains.  Investors sold down stocks at the open after receiving disappointing economic reports to close the week.  A report on personal spending showed consumers spent less than forecasted for April. Also adding to the selling pressure was a final reading on consumer sentiment which showed sentiment falling below expectations for May. It was the first decline in a year as Americans cut back on purchases and also saw declines on utilities due to unusually warm weather. On a brighter note, a report from the Chicago PMI, showed manufacturing activity picked up more than expected. In overseas action, Europe was mostly flat while Asian markets finished lower. As the last trading day of May comes to close, expect more uncertainty to creep in over the summer months as investors consider the elephant in the room...the imminent exit of the Fed's QE program and the effects of a rising interest rate environment.

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