The market had meandered all week long, and while it was off the bottom of trading range, it clearly was looking for a catalyst. Instead of waiting for the outcome of the British EU exit vote, investors jumped the gun, especially late in the session.
The housing market, at least on paper, has come all the way back as median prices increased 4.7% in May from April to $239,700.
Oil was lower for the sixth day in a row with growing concerns over Britain leaving the EU. Brent crude, a global benchmark, has fallen 9% in the last 5 session and trading around $47.50.
Last year, the market stalled; the IPO market dried up, and the economy crawled along as the Gross Domestic Product (GDP) edged lower with a sense of pessimism hanging in the air.
People are becoming more afraid and the thing about fear is that once unleashed, it can feed on itself. "Fear begets fear" is often seen as a contrarian indicator in sync with the notion that the crowd is always wrong and the emotionally-driven crowd is always extremely wrong.
The headlines were all over the place; depending on whom you believe, the market sold off on Friday regarding concerns over the so-called Brexit, global growth worries, or overbought conditions. I suspect that you could also check the box marked all the above.
Consumers have put the chill on credit card usage in April after a monstrous surge in March. Still, the pace of credit card usage is increasing and swiftly heading back to all-time high levels.
Each year, Boston Consulting Group (BCG) releases its in-depth report on high-net-worth individuals around the world; while its a piece that leaves money managers and others salivating, there are not-so-subtle messages on the economy that go well beyond generating commission checks.
Yesterday, the market finished the day higher even as its clear that Janet Yellen is wedded to the idea of rate hikes this year; maybe even in July or September.
Initial claims for the week ending May 28 fell to 267,000, a decline of 1,000 but lower than the expectation of 270,000. This marks 65 consecutive weeks that the initial claims have been below 300,000. The 4 week moving average, a better gauge was down 1,750 to 276,750.
The market limped out of May, but brought lingering concerns that include the overarching question on the true state of the economy, which has seen monster numbers in home sales and now consumer spending.
Last week Facebook and Microsoft announced a joint venture to lay 4,000 miles of underwater internet cable between Virginia Beach and Bilbao.
Is the economy getting too hot? Well, the Atlanta Fed sees its current quarter Gross Domestic Product (GDP) approaching 3.0%, a number never reached on an annual basis under President Obama, but it still might have spooked the Fed.
Is the consumer dead, or are there different values driving household spending?
The markets and the presidential race are going to be tied into the same sentence more and more as we approach November; its inevitable that business will take sides and root for one candidate over another.
Tuesdays economic data actually drove the 2Q17 Gross Domestic Product (GDP) expectations lower at the Atlanta Fed, but it was the regional Fed banks Hourly Wage Tracker that set the pace of the session.
Maybe its a gut feeling based more on a lack of confidence in the economy and a very dramatic race for the White house; maybe its concerns about the Fed hiking rates. Maybe its general worries; selling begets selling that further begets more selling.
So, what is the true state of the economy? At least a half a dozen retailers including Dillards (DDS) are getting hammered this week.
If youre a business owner and you are anything like me, you love an Office Depot or Staples store with all those supplies; arming yourself to go it alone and conquering the world of business is exciting.
This is why Disneys (DIS) earnings are so important after the close. One of the best run companies in the world, the stock has reflected pressure from its ESPN unit, all but ignoring all other successes.