Both the Dow and S&P 500 were off slightly after the great run higher over the past few weeks. Things were quiet for much of the day. There was an attempt at a rally mid-day that failed to hold and the large averages sold off fractionally.
Investors have increased their appetite for risk as the market continues to climb to new highs. There was a tremendous amount of fear in April that growth was not going to be sufficient to maintain such lofty levels on the major averages. Economic data was beginning to surprise to the downside and many felt that a long awaited pullback was just around the corner.
CNBC had to be feeling good about itself last week. Not only did it have the pleasure of highlighting some dubious business practices employed by its competitor Bloomberg, it also had the good fortune of conducting the interview heard around the capital markets world last Tuesday.
Stocks may not do much in today’s session given the almost empty economic calendar, but the bias will likely remain to the upside.
Tepper stokes the melt-up. “I am definitely bullish. The budget deficit is shrinking massively. Guys who are short, they better have a shovel to get out of the grave.” Hedge fund manager David Tepper, CNBC, May 14, 2013
How will Russian President Putin's efforts to squeeze the nuclear energy sector affect the uranium market?
Based on both recent history and mainstream economic theory the past few years should not have been possible. When you cut interest rates to near-zero, run deficits of 10% of GDP and buy up every government bond in sight with newly created currency, you get a boom, end of story. That’s just the way capitalism works.
As someone once famously said, “Man does not live by bread alone.” The best arguments against free trade lead us away from economics toward the question of national sovereignty.
They aren't currency wars, they're "currency tensions." -Mohamed El-Erian. Either way, Japan is ruffling a lot of feathers as it exports deflation.
While we tend to focus more on the short and intermediate term, we notice that there is a lot going on in the long term time frame. Most obvious is the breakout above the top of a long-term trading range.
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