Yesterday’s U.S stock session was characterized by additional selling pressure as economic data had more of an influence on the session, than positive words from the U.S president. The closely watched Beige Book showed that certain parts of the economy are beginning to improve, but consumer spending hasn’t yet picked up; something that could weigh on the future recovery.
While parts of the report were positive, they didn’t impress investors, sending them back into safe-haven. In addition, the Durable Goods figure showed a massive drop, coming out at -2.5%, compared to last month’s -0.6%. Even though the core result showed a mild increase, the total value of new orders for durable goods dropped severely, showing that the U.S economy is still in a problematic situation.
On the upside President Barack Obama stated at a town-hall meeting in North Carolina that the U.S could be starting to see the end of a 19 month recession. Even though the unemployment level is still in a dire situation, the president did mention that the financial system has now avoided a major collapse and that home prices have increased for the first time in three years. While the President gave an optimistic speech he did also state that the U.S economy is far full recovery and further efforts could be required to restore healthy economic growth.
Stocks traders looked past the encouraging speech, troubled by the size of the current deficit. The stock market took another hit closing the session with an average loss of 0.5%. The energy sector felt the most pressure, dropping throughout the session by -2.31%.
Read the full article at dodjit.com
While parts of the report were positive, they didn’t impress investors, sending them back into safe-haven. In addition, the Durable Goods figure showed a massive drop, coming out at -2.5%, compared to last month’s -0.6%. Even though the core result showed a mild increase, the total value of new orders for durable goods dropped severely, showing that the U.S economy is still in a problematic situation.
On the upside President Barack Obama stated at a town-hall meeting in North Carolina that the U.S could be starting to see the end of a 19 month recession. Even though the unemployment level is still in a dire situation, the president did mention that the financial system has now avoided a major collapse and that home prices have increased for the first time in three years. While the President gave an optimistic speech he did also state that the U.S economy is far full recovery and further efforts could be required to restore healthy economic growth.
Stocks traders looked past the encouraging speech, troubled by the size of the current deficit. The stock market took another hit closing the session with an average loss of 0.5%. The energy sector felt the most pressure, dropping throughout the session by -2.31%.
Read the full article at dodjit.com
