Fear of the Fed rules the morning action. Investors are very nervous that the Federal Reserve might change its stance next week and are driving down stocks even as positive economic data is the order of the day. The Consumer Confidence index came in strong and higher than expected and retail sales were solidly higher with an added kicker as last month's reading was revised upward. It's all good except for market indexes that are down almost 1/2% in early activity. Clearly it is the 'good news is bad news' scenario, with analysts fearing that the solid economic recovery in the US will decrease the need for economic stimulus, and the Federal Reserve Bank will raise rates sooner than later. Expect the solid economic data to prevail today and for markets to recover to the plus side as the day wears on. Gold and oil both continue their extended declines. Interest rates are inching upward, again anticipating Fed action.
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