So which is the scarier news?
The U.S. economy grew at a 2.6% rate in the fourth quarter of 2014. That was down from the 5% increase in the third quarter. Inflation in the EuroZone fell to an annual negative 0.6% in January–that’s deflation folks.
Of the two stories fighting for mindshare among investors, today the negative is in the ascendant. The negative story is that a stronger U.S. dollar and slow growth in Europe, Japan, and (relatively) China will hurt earnings at U.S. exporters and cut into U.S. economic growth despite lower oil prices and low interest rates.
Existing home sales grew by 2.4% in December to an annualized rate of 5.04 million. That was an increase from the revised 4.92 million annualized rate in November. The December number is reassuring for anyone worried about a slowdown in the U.S. economy after disappointing numbers from the retail sector
Worries about global growth today include lower forecasts from the World Bank, disappointing U.S. retail sales, and a miss on growth from China–so where are the acorns that will growth into oaks?
The market moves up on lower than expected crude inventory and good jobs report from ADP, but waits to hear from the Fed at 2 p.m. and on official jobs report on Friday
The sectors leading the market slightly lower are those cyclical sectors that have moved up most strongly on strength of U.S. economic growth—including the revision of third quarter growth to 5% rate.
The U.S. economy grew at a 5% annual rate in the third quarter, the Bureau of Economic Analysis announced this morning. That was a huge upward revision from the previous read of a 3.9% annual growth rate
Take last week’s fears that the drop in oil prices was a sign of a slowdown in global growth and add a plunge in the ruble and you’ve got a market where the bears feel free to roam.
Higher than expected retail sales with their promise of strong U.S. economic growth took over to drive stocks higher after yesterday’s oil-price-driven sell off. Retail sales rose 0.7% in November
