Good sign from Wall St
by Peter Switzer
The Dow and other US markets were down overnight but there was a really good sign — Wall Street ignored promises from Portugal to be fiscally responsible, instead concentrating on the US economy!
I am sure many of you might be saying: “What?” How is it good that US markets fell and it’s a positive sign?
To set the scene, the Dow Jones fell 113.96, or 1.1 per cent, to close at 10,782.95. The S&P 500 dropped around 1.2 percent, while the Nasdaq slipped 1.3 per cent.
Now hot on the heels of Spain signing up to fiscal responsibility, Portugal also promised to an austerity program but the US market took it in its stride. That means the Euro debt concerns are slipping off the short-term radar screen and the US economy becomes the main game again.
The market was spooked by some cautious comments from Cisco boss John Chambers despite his company shooting the lights out on its latest profit report card.
He has since argued that market analysts had “over-interpreted” what he said.
In other economic news, initial claims for unemployment benefits dropped to 444,000, and that’s four weeks in a row of declines.
As you can see there was no real market shocking news and that it was just a trading days where sellers outnumbered buyers after a recent run up of share prices.
Like our Budget, it was good old boring, if you can ignore that stupid resource super profits tax.
On Saturday morning our time the Yanks get retail sales, industrial production, consumer sentiment and business inventories. This swag of economic readings could be market moving, so stand by.
PS: I am off to Shanghai where I will do my Sky News Business Channel program from the World Expo. So I will be in a very Chinese frame of mind next week.
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Published on: Friday, May 14, 2010blog comments powered by Disqus