Thursday, July 15, 2010

On recent economic data...

Good Morning,

A “plethora” of economic data was released recently showing mixed economic signals but showing that, overall, we are going in the right direction.

Positive
- Producer prices were lower than expected. Therefore inflationary risk continues NOT to be of concern.
- JP Morgan doubled its earnings compared to a year ago. Since JPM is one of the first banks in 2Q’10 earning season this could be an indication on the performance of other banks. A better earning season would positively impact the Dow Jones (better for our 401Ks?)

Negative:
- The Fed lowered its growth expectations for 2010 to 3.00 – 3.50%

Neutral
- Unemployment is still the big problem as Initial Jobless Claims dropped to the 450K range but Continuing Jobless Claims rose more than anticipated.

Rod

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