(as of 7:10 AM PST)
Conflicting economic data this morning has investors befuddled and markets split. Consumer spending is the bright spot with its 1% increase the largest since 2009. Inflation is showing signs of life, creeping up to .3%, which is actually perceived to be a good thing by most economists. On the down side of the news was consumer confidence, which dropped to its lowest point since December of last year, and the Chicago PMI, a key measure of industrial activity in the Midwest, which slipped into contractionary territory. In international news, Asian markets have registered solid gains overnight while Europe is mostly down, but mildly so. Testimony by Janet Yellen, Federal Reserve Chair, seems to indicate that another interest rate increase is coming sooner than later and that perception is likely suppressing any response from the positive side of the data. Gold continues to slump while oil is finding support around the $50 per barrel mark. Expect the threat of higher interest rates to keep markets depressed as the week progresses.
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