Good--but Not Great--Economy Confounds Bulls and Bears
Though the market has been prone to taper frets, nothing in this week's economic data was particularly strong.
With little economic news and the corporate earnings cycle winding down, the market treaded water through Wednesday with little change in stock and bond markets. Then the market moved down sharply on Thursday as a stronger-than-expected GDP report caused participants to re-evaluate exactly when the Fed might begin to taper. On Friday, after an above-average jobs report, the market moved surprisingly higher.
I didn't think this week's economic data was particularly strong. Weekly retail sales annual growth remained at the 2% level, and initial unemployment claims are about where they were a quarter ago, despite the ups and downs of the California computing glitch.
Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.