(As of 7:10 am pacific)
Exuberance was the best word
to describe today’s market open. An
upwardly revised GDP figure of 2.7% growth from an initial 2% measure propelled
the markets to an extension of yesterday’s rally. The dollar is down and most commodities are
up reflecting renewed optimism, not only for the US, but for the global
economy. Oil is up by over 2% while gold
is moderately higher as well. Interest
rates are stable, as government buying seems to be overcoming what would
normally be a spike in interest rates resulting from the good news. Retail sales numbers from major retailers
came in well below expectations and that dampened the initial enthusiasm, but
Hurricane Sandy is being blamed for that ‘anomaly’, and markets are not
reacting as negatively as would be expected with pessimism that should
accompany such an economic report.
Positive vibes on ‘fiscal cliff’ talks are also adding a bit of positive
momentum. It looks like a good day for
the bulls.
