Conflicting economic data has
investors perplexed this morning and markets have started to the down side as a
result. 1st Quarter GDP was
reported at a meager .1%, virtually unchanged, and below expectations of a 1%
growth number. The low number was most
likely a result of the brutal winter weather in the Midwest and Northeast but
was nonetheless sobering for markets. On
the positive side, the Chicago PMI, a key industrial measure, was a very robust
reading of 63. Any reading above 50
indicates growth, and 63 was seen as a very strong indicator. The ADP private hiring number showed an
increase of 200,000 jobs added. While a
strong number, it is usually discounted because it often is in conflict with
what is really happening in the job market.
Gold and oil are off on the GDP number and the dollar is falling against
most foreign currencies. On a side note,
the low GDP number may give the Federal Reserve more ammunition to keep
economic stimulus flowing. That has
always been a stimulus to the markets and may once again stem the flow of red
ink and allow markets to register a small gain.
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