(as of 7:18 AM PST)
Interesting dynamics have
stock markets jittery, hovering around flat line. There is a feeling that investors want to
propel markets higher yet hesitation as the Dow Jones Average hit a record high
yesterday. Economic data is strong. Personal income was up half a percent, while
personal spending was up by .9 percent.
The April ISM number, a key measure of industrial activity, came in
above expectations at 54.9, the highest reading since December. Any number above 50 represents positive
growth and 54.9 is very robust. Jobless
claims were much higher than expected, dampening some enthusiasm. The beginning of May begins a pattern for
some investors that exaggerate selling pressure. The ‘Sell in May and go away’
is an anomaly of markets that suggest investors move to the sidelines for the
May through September period, since most gains are generated from October
through April. Whether significant or
not, markets have to deal with an artificial outflow of capital which could
temporarily increase selling pressure, forcing markets down. Commodities are lower across the board, led
by gold, down more than 1%. Interest
rates continue to be very well behaved, with the 10 year yield at 2.65%. Positive data may be strong enough to push
markets to yet another record today.
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