Data has generally been good
this morning. It has not been enough to
shift negative momentum which was evident in yesterday's market decline. Stocks
are down modestly at the open. Jobless
claims were down more than expected, indicating that job growth is likely to
pick up in the near term. Last quarter's
GDP was revised upwards by a small amount.
The governments grading of the strength of bank balance sheets was very
strong after yesterday's market close with the notable exception of Citigroup
which fell heavily at the start of market action. But the good news was muted by overhanging
issues. Ukraine is a huge geopolitical
threat which could ignite in conflict at any moment. The withdrawal of economic stimulus as the
economy strengthens is another concern.
It has been a long rally and it seems that investors are seeing many
stocks as overvalued and are hesitant to increase holdings. It could be a tough day as investors focus on
the negative. Gold is down again,
falling below $1300 per ounce while oil is up over 1%. Interest rates and the US dollar are near
unchanged.
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