Markets React to Fed, Europe and Apple:
Dow trades back and forth over past week and a half.
The major averages are reacting to several data points today such as information from the Fed, Apple as well as Europe. The Fed’s Beige Book was released today and it added to speculation that the economy will continue to expand at a slow pace.
Reports from the twelve Federal Reserve Districts indicate that overall economic activity continued to expand in September, although many Districts described the pace of growth as “modest” or “slight” and contacts generally noted weaker or less certain outlooks for business conditions.
See the Fed Beige Book report here:
Europe back on the table
Traders are still concerned about EU and “Europe stress syndrome” continues to permeate market activity. Activists in Greece are fighting austerity measures and the EU summit hasn’t convinced traders that the European debt crisis will be resolved shortly. We are waiting for the money. Until a joint plan is constructed with actual figures, it may be difficult for traders to find reasons to purchase equities in the short term. Volatility rose today sharply as market participants passed equities around with no intention of holding them with conviction.
Apple’s earnings fall short
Apple disappointed yesterday and the Nasdaq is taking a hit as tech traders digest news about the company and its future without Steve Jobs. We believe Apple won’t be the same without Steve Jobs’ vision but short term fluctuations may be -noise.
