Positive economic data
yesterday did not help as markets suffered a moderate decline. This morning’s data has been pretty ugly, but
investors are ignoring it and pushing stocks higher. First quarter GDP was revised downward to a
minus 2.9%, the largest quarterly decline in years. Most analysts see this as a one-time anomaly
and markets have already shrugged off the number. Durable goods orders came in on the negative
as well, down 1%. Much of it was due to
reduced defense spending and some internal positive numbers gave investors an
optimistic bent on the overall reading.
Expect markets to continue to struggle.
With stocks near record levels there is a sense that investors are weary
and that any negative news might spur a bout of profit taking. Oil and gold are down a small amount and
interest rates stable.
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