(as of 7:15 AM PST)
The stock market was shaken this morning by the Empire Manufacturing Index which showed a shocking slowdown in industrial activity in the New York area. Far below expectations of a positive 5.0, the reading came in at negative 14.7. Any number below zero reflects contraction. In what would normally be a quiet summer day with many traders on vacation, the reading sent markets lower to start the day. In other troubling news, Japan's economy contracted in the last quarter despite strong efforts of financial stimulus. Markets were mixed in Asia and Europe. Europe is still looking to finalize a Greek financial rescue package. Oil continues to slump and a glut of supply while gold is on the comeback trail, perhaps as a safe haven bet for investors. The silver lining of the negative economic data is that it might well forestall the September Federal Reserve rate hike that many expect. Expect markets to recover throughout the day as this 'bad news' translates into 'good news' for the few investors not on vacation.
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