Comments from Philly Fed President Charles Plosser would likely keep the spotlight on the Fed’s QE program in today's trading session. Mr. Plosser is part of the hawks on the FOMC that have been arguing for scaling back the pace of bond purchases before stopping the program altogether.
The S&P 500 closed unchanged on the day and the Dow was lower by 0.18%. Semiconductor equipment, airlines, materials, and utilities lagged the market today and insurance and asset managers outperformed. Materials stocks were lower on slashed China growth estimates.
The past few years we have seen the market roar higher out of the gate only to suffer a sharp pullback as we enter the spring. A spike in the price of oil has been a major cause of that each time. As the price of fuel has spiked in each of the past few years we have all in effect suffered a tax hike.
The market’s recent shift back into economically sensitive assets tells us stocks could continue their surprising march higher despite the ongoing calls for “sell in May”. As shown in the chart below, the S&P 500 made no progress during the last twelve years. The “no progress” pattern was recently broken, which could lead to head-scratching gains in the months ahead.
The notion that silver has been recently trading more like a base metal is more a fallacy than fact. Some of the top technical analysts have been stating that the reason why the price of silver has not held up as well as gold is due to the fact that silver trades more like copper than gold.
Little doubt remains that China's export numbers are at best unreliable but more likely simply fudged.