Sunday, January 28, 2007
A Calm Day
Friday was a little calmer with the SPX finishing down 1.72 points to 1,422.18. We are still in green after a volatile week.
Economic news for Friday was positive and earnings weren't bad. Durable goods and new house data was better than expected. However Friday's losses by the major indices had to do with a rise in long-term interest rates. There are concerns that the strength in the economy and inflation pressures are still too high and could lead to more rate hikes by the Fed. Of course, higher interest rates are a negative for stocks.
It's an extremely busy week this week economic data wise, with a Fed meeting, the first reading on fourth-quarter growth, the January jobs report, the January purchasing managers' index, the consumer confidence indexes, the Treasury's quarterly refunding announcement, auto sales, and key readings on employment costs and inflation.
With the Fed certainly keeping rates on hold for a few more months, the gross domestic product report and nonfarm payrolls will take top billing for the week. But lets hope the Fed don't spring any scary words at their meeting this week.
Lets see what this week will bring.
Until next time.
Economic news for Friday was positive and earnings weren't bad. Durable goods and new house data was better than expected. However Friday's losses by the major indices had to do with a rise in long-term interest rates. There are concerns that the strength in the economy and inflation pressures are still too high and could lead to more rate hikes by the Fed. Of course, higher interest rates are a negative for stocks.
It's an extremely busy week this week economic data wise, with a Fed meeting, the first reading on fourth-quarter growth, the January jobs report, the January purchasing managers' index, the consumer confidence indexes, the Treasury's quarterly refunding announcement, auto sales, and key readings on employment costs and inflation.
With the Fed certainly keeping rates on hold for a few more months, the gross domestic product report and nonfarm payrolls will take top billing for the week. But lets hope the Fed don't spring any scary words at their meeting this week.
Lets see what this week will bring.
Until next time.
# posted by Paul @ 3:06 PM 
