Lagging banking sector barrier to S&P 500 advance: where’s the leadership?

Lagging banking sector barrier to S&P 500 advance: where’s the leadership?

Banking stocks continued their recent drift. The Financial Select Sector SPDR (XLF) closed the day at $23.25. That’s below the sector’s May 25 close at $23.62. The sector, one of the best performing sectors in the market since the election, has been a key to moving the Standard & Poor’s 500 upward earlier in 2017. The KBW Banks Index had been up 32.2% from the election to the beginning of March, but is now ahead just 20%

Treasury bond market continues to confound

Treasury bond market continues to confound

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A Fed interest rate increase in June? Consumer spending says, Yes; Inflation slowdown says, Maybe

A Fed interest rate increase in June? Consumer spending says, Yes; Inflation slowdown says, Maybe

Consumer spending picked up in April, signaling that growth in the economy as a whole is headed for a rebound after a weak first quarter. Purchases increased by 0.4% in April, matching projections from economists surveyed by Bloomberg, after a 0.3% gain in March. On the other hand, the Fed’s preferred inflation measure, the PCE, rose just 0.2% in April from March and is now up only 1.7% year over year. That’s below the 2% inflation target set by the U.S. central bank

Q1 GDP not so bad after all; this seals Fed June 14 rate increase

The second estimate for U.S. GDP growth in the first quarter came in today at a much stronger than expected 1.2% annualized rate. That was an upward revision from a first estimate of 0.7% annualized growth. Economists were expecting a smaller increase to 0.9% annualized growth. The stronger than expected revision locks in an interest rate increase by the Federal Reserve at its June 14 meeting, in my opinion.