Bad News Is Good News Again
The market is hoping for yet another round of monetary easing, but the economy--while sluggish--is not on the verge of collapse.
With a fairly limited set of economic data early this week, markets took their cues from events out of Europe. European news, more related to banking issues, bond ratings, and interest rates than economic activity, certainly wasn't pretty.
Later in the week, a difficult-to-interpret U.S. retail sales report showed an outright month-to-month decline for both April and May. Even though seasonality, weather, and falling gasoline prices (and consumer prices in general) explain a lot of the retail softness, markets were unimpressed with excuses.
Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.