Revised Data Show Better, But Not Booming, Economy
Last week's GDP revisions gave everyone a chance to revisit where the economy is and where has it been.
This week, there wasn't much to report in terms of economic or earnings news, so markets had time to fret about Fed governor speeches for most of the week. Governors on this week's speaking circuit all seemed to indicate that tapering of bond purchases could happen as early as September or October. These worries led to a declining stock market this week, for the first time in a while.
What economic news we did get was respectable: initial unemployment claims were down, the services sector is picking up steam, home prices continue in boom territory, and trade data made a drastic turn for the better. Normally I would say the improved data may have raised tapering fears, scaring markets of all types, but interest rates barely budged this week while stocks and commodities trended down.
Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.