(As of 7:15 am PST)
Stocks are lower this morning
after several economic reports give investors pause. Retail sales for December surprised on the
upside, rising 0.5% beating expectations and showing consumers were less
concerned over the fiscal cliff as markets depicted. Retail sales will likely be impacted this
year as consumers are now seeing a hit to their paychecks from the expiration
of the 2% payroll tax cut at the beginning of the year. Other economic reports this morning showed
manufacturing shrinking in the New York area and producer prices falling
slightly in December, signaling continually low inflationary pressure. Fears over the debt ceiling seem to be
driving market direction today. Fitch
Ratings reiterated its threat of downgrade to the US AAA credit rating if the
debt ceiling issue continued to see delay.
Also weighing on markets is Apple.
Continuing its slide from yesterday, shares of Apple are down 2.6%,
breaking below $500 per share. European
markets are lower over the US debt concern and Asian markets were mixed. Oil is down slightly and gold is drifting
higher. Interest rates are lower today
and volatility is picking up. Earnings
will continue to play a major role in market direction, however as the first
quarter drags on, expect concern to shift to the debt ceiling debate and
spending cuts.
