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July 29: Economic Indicators to Decide Market Trajectory - Economic Highlights
7/29/2013 10:29:00 AM
The tentative pre-open sentiment today is likely a sign of
things to come this week given the heavy economic calendar, with
GDP, Fed, and jobs reports coming out later this week. On the
earnings front, the reporting season is past the halfway mark.
What we have learned thus far is that while earnings aren't
terrible, they fail to provide sufficient justification for the
market's current level either.
These assurances helped stall the scary looking uptrend in
long-term interest rates that appeared to be threatening the
housing recovery. Housing related stocks have yet to recover from
the shock of the interest rate move since May, though we haven't
seen any evidence yet that the rise in interest rates thus far
has had a material negative impact on the sector beyond
The economy isn't expected to show much growth for Q2, with the GDP number expected to show a sub-1% growth pace. But the expectation is for the growth pace to start getting better from Q3 onwards. We have yet to see any evidence of this expected improvement, but that's the view underpinning consensus expectations.
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