(As of 7:15 am pacific)
Markets are flat this morning while slightly positive
economic reports weren’t enough to lift stocks.
Consumers spent more in November with retail sales edging up 0.3% after
falling in October. Energy prices
meanwhile fell 4.6% in November – the biggest 1 month decline since March
2009. Lower gas prices mean more dollars
in the pockets of consumers and thus a good thing for the economy. In other economic news, jobless claims fell
last week to the second lowest level of the year. Yesterday was an historic day as the Federal
Reserve announced new targets regarding its interest rate policies. The Fed announced it will keep interest rates
near zero until the unemployment rate hits 6.5%, so long as inflation does not
exceed 2.5%. It showed the Fed is
willing to continue accommodative policies as long as needed. International markets are mixed today. Commodity prices are lower with gold down
1.3% and oil off 0.5%. Interest rates
are slightly lower and volatility is slightly down. Politicians remarked yesterday that they will
work through Christmas to get a fiscal cliff deal on the table. Until then, markets remain complacent.
