(As of 7:19 am PST)
Markets are lower this morning
after yesterday saw the Dow adding to its record run and the S&P500 closing
within 2 points of its all-time record high.
Economic reports were mixed this morning. Consumer prices rose 0.7% in February led by
a surge in gasoline prices. However,
looking at the core CPI (the figure used by the Fed to determine inflation
targets) which strips out volatile food and energy prices, prices rose a scant
0.2%, in line with expectations.
Industrial production rose 0.7% after a weak report in January and
capacity utilization, which measures output, rose to its highest level since
2008. The Empire State index, which
surveys manufacturers in the New York region slipped slightly but remained
positive for the second straight month.
Despite the relatively positive data, investors began selling
early. Adding to the downward pressure
was a disappointing consumer sentiment report which showed sentiment dropping
to its lowest level since December 2011.
Stocks in Europe were lower following US data, while Asian markets
finished mostly higher after yesterday’s gains on Wall Street. Gold and oil are up while interest rates
slipped slightly. With the mixed data and triple witching (a day
in which stock-index futures, stock-index options, and stock options contracts
expire simultaneously), investors may be finding this a good day to trim out
some profits after these record highs.
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