FOMC Does Not Signal End To QE: The FOMC’s statement today was strong/bullish but most of the attention was not on the lack of inflation or that the FOMC could make additional bond purchases. ADP’s data today showed the economy is exceptionally weak with only 119 private jobs in April 2013 The 3 Most Important…
Disappointing First Quarter 2013 GDP Growth At 2.5 Percent Will Keep Fed On Hold: Sometimes bad news is good news. Yes, everyone would prefer better economic numbers, but that’s not happening and the political economy risk that has threatened the U.S. economy for the last few years is taking root again. Sequestration and the increase…
The Jobs Market April 2013 Is Characterized By Confusion: Initial jobless claims decreased last week but the economy doesn’t seem too strong. Claims for initial jobless benefits fell by 16,000 for the week ended April 20 to 339,000 the Labor Department said today. The reading was the lowest since March 9 but market participants weren’t…
No need to worry about the Fed ending QE with mixed economic data: Durable goods orders fell in March as businesses cut back on investment in capital equipment. The Commerce Department said durable-goods orders for long lasting manufactured goods fell by 5.7 percent from the prior month. Some of the decrease in durable goods orders…
Associated Press Tweet Causes Flash Crash, Rattles Markets: The Dow Jones Industrial Average fell precipitously after a tweet from the Associated Press claimed the White House had been attacked and that President Obama was hurt. The tweet occurred at 1:07 pm and at 1:16 pm, AP confirmed the account had been hacked at a White…
S&P 500 Rangebound. The S&P 500 bounced off of levels that were considered near term support after a tumultuous headline filled week due to the Boston Marathon bombers and worries about public safety. Equities rebounded after the bomb suspects had been accounted for and follow through today was a positive sign for stock market bulls.…
Are stocks signaling a much weaker economy than expected earlier in 2013? The U.S. Department of Labor said initial claims for unemployment insurance benefits rose last week. Jobless claims rose by 4,000 from the prior week of 348,000 and are evidence the labor market remains weak. A weak labor market continues to have negative effects…
Gold Prices Keep Falling As Risk Rotation Increases: Gold bulls are getting hammered as more people pile into risk assets such as equities. It may not be as pronounced as in times past, but investors are getting out of the precious metal and looking for better returns. Gold has had a good 12 years, just…
Will Follow Through Occur? U.S. equities rebounded after losing ground yesterday. One day after the Boston Marathon Bombing, stocks rebounded led by the financials after Goldman Sachs reported good numbers along with positive housing data. Housing starts increased by 0.7 percent to 1.04 million annually the Commerce Department said today. The increase was the most…
