The overdue pullback pulled off it’s first significant down day but is it another one-off? That’s the question those who want to get into this market have to answer, but working out when is the new anxiety problem for investors.
The market had to cope with a weaker than expected New York Manufacturing Index and some bad news on credit cards.
The latest look at credit card defaults showed they were at record highs and underlines the next challenge for the US economy — getting the consumer back in the game!
After stock markets big run up, this has to be the time to question whether the market has got ahead of itself. This being a quadruple witching week will also throw a lot more volatility into the mix.
The economy will hold centre stage until the June quarter profit results hit the street and these will have a big bearing on where stocks head.
The best news I could glean today was about Goldman Sachs’ legendary analyst, Abby Joseph Cohen who reported at the Reuters Investment Outlook Summit in New York that corporate profitability could jump in the third and fourth quarters, when compared with the low baseline profits seen in the second half of 2008 (CNBC).
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