Negative data on the domestic
front keeps trickling in. While much of
it is being attributed to the bad weather of the first quarter, the mounting
pile of middling to bad reports is distressing.
Productivity was down significantly along with previously reported
negative GDP. The ADP report indicated
that the private sector created the fewest jobs in months. The trade deficit is
ballooning again, indicating that imports are increasing versus exports. The
ISM services report, an important measure of economic activity, was above
analyst expectations and that has soothed investor anxiety a bit. That report is especially noteworthy since
services represent 75% of our economy. Markets are down slightly but continue
to be very quiet. Oil and gold are both
up slightly as are interest rates. Actions
expected by the European Bank over the next two days might provide direction
for what has been a listless market in June.
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