(As of 7:19 am pacific)
Mixed signals for the US
economy are puzzling investors this morning. US markets opened with mild gains
on a report that jobless claims had dropped significantly. At the same time, some negative data was
added to the mix as durable goods orders were down 13%, mostly due to the
volatile transportation sector. 2nd
quarter GDP was revised downward to 1.3%, a very anemic reading. Europe is quiet this morning and Asia is
positive due mainly to expectations of further economic stimulus. It feels like the market wants to move into a
'risk on' mode, with most commodities up, including solid gains in oil and
gold, but the negative data is putting the brakes on. Further questioning of the QE3 strategy is
also repressing the bullish tones. Expect
another up and down day, but in the end I think that the prospect of a good
jobs number tomorrow, based on today's jobless claims number, will lead to a
moderately positive day on the markets.
