Investors had a lot to digest this morning after a slew of economic data crossed the tape, and another snow storm blanketed New York City.
4Q GDP was revised slightly higher, Chicago ISM (formerly PMI), which measures business activity, rose to highest level since April 2005 and consumer sentiment essentially held steady. But the big kicker was a plunge in existing home sales.
More than a foot of snow (and counting) covering NYC is likely contributing to the apathetic mood toward the market; DJIA has stayed within a roughly 80-point range from high to low so far.
While stocks are quiet, market observers are sifting through the data, and not terribly impressed by what they see. The GDP report suggests several reasons for caution, even as the economy grew at the strongest pace in more than six years, Barbara Kiviat writes at Time’s Curious Capitalist blog. About two-thirds of growth came from changes in inventories, not final sales.
“Demand for final products paints a much less rosy picture,” she says.
Posted by John Shipman
on February 26, 2010
, S&P 500
Good luck trudging to work today.
A large, lingering snowstorm likely means skeleton crews on Wall Street and throughout the Northeast today, February’s final trading session.
Plenty of economic data to occupy investors this morning, including a second look at 4Q GDP at 8:30am; February Chicago ISM (formerly PMI) at 9:45am ET; Reuters/Univ of Michigan final Feb consumer sentiment reading at 9:55am; and January existing home sales set for 10:00am.
Thinner participation and month-end activity create a ripe environment for some volatile swings in the market today. S&P futures up 2.60; 10-yr slightly lower, yield at 3.65%.