(As of 7:12 am PST)
After a strong performance
last week that saw the Dow soar to record heights, stocks are starting this
week off on a softer note. Investors have
taken the foot off the pedal, keeping an eye on fiscal headwinds from the sequester
while digesting disappointing Chinese data out today. Although markets for the most part shrugged
off Congress’ inability to a strike deal back on March 1st regarding
the budget sequestration, there’s still cause for concern for the next couple
months as the effects of billions of dollars in spending cuts hit the
economy. This week, investors will be
watching as both heads of Congress work to introduce their budget resolutions
aimed at addressing the deficits. In
international news, Chinese stocks finished lower after disappointing data
showed consumer inflation rising and industrial activity growing at a slower
pace in January and February. European
markets traded mostly lower after Fitch rating agency cut Italy’s credit rating
on Friday. Gold is slightly higher, and
oil down by 0.5% while interest rates are up.
The US economic calendar is empty today, with investors pausing to look
for direction after an historic week last week.
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