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Dear Subscribers,
Jobless claims are moving back in a healthy direction. The 409,000 showing was a solid 4% better than expectations and we look ready to head back under the key 400,000 level. This got stocks revving their engines at the open.
Unfortunately things turned south at 10am ET when the Philly Fed survey showed regional activity coming in at only 3.9 vs. 23 consensus. I personally don't read much into these regional Fed reports. Why? Historically they are very volatile. In fact, this same survey showed great weakness through the middle of 2010 and proved to be quite wrong in the end. As the day progressed the recent good news outweighed the bad with stocks putting in a mildly higher finish.
I expect each day in the near future will have the same tug of war with the fresh data as it rolls in. Bad news will beget lower stocks prices. And then the next batch of good news comes in to even things out. (Read: Volatility still in effect...but odds point to more stock upside over time as well).
Jobless claims are moving back in a healthy direction. The 409,000 showing was a solid 4% better than expectations and we look ready to head back under the key 400,000 level. This got stocks revving their engines at the open.
Unfortunately things turned south at 10am ET when the Philly Fed survey showed regional activity coming in at only 3.9 vs. 23 consensus. I personally don't read much into these regional Fed reports. Why? Historically they are very volatile. In fact, this same survey showed great weakness through the middle of 2010 and proved to be quite wrong in the end. As the day progressed the recent good news outweighed the bad with stocks putting in a mildly higher finish.
I expect each day in the near future will have the same tug of war with the fresh data as it rolls in. Bad news will beget lower stocks prices. And then the next batch of good news comes in to even things out. (Read: Volatility still in effect...but odds point to more stock upside over time as well).
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