'Strong' (and variations thereof) is the operative word in the FOMC statement. Rates are the same (1.75% - 2%) and the Fed affirmed its 'gradual hike' approach, but it upgraded the economy from solid to strong, describing several areas as experiencing strong growth, or as it put it they 'grew strongly.' No poet laureates on this Fed.
Here is the 'strength' list:
-Economic activity rising at a 'strong rate.'
-Job gains 'have been strong.'
-Household spending and business investment 'have grown strongly.'
Core and overall inflation near 2%, risks roughly balanced, further gradual increases -- unanimous decision on all points.
The market did a Peter Pan from the early gains as the recently strong industrial-ish stocks are selling harder than we like on the Trump threat to increase tariffs to 25% on $200B of Chinese goods.
Many of the rebounding techs have lost the mojo as well though they are not tanking -- already did that, right?
Financial stocks are off modestly even as the 10 year moves over 3% in yield.
Lots for the market to digest moving into the back half of the afternoon session. Some bids have returned post-FOMC after an initial farther selloff. Will see if that bounce can grow a bit and spread back to the industrial stocks.
SP500 -2.68, -0.1%
NASDAQ 34.41, 0.45% gratis AAPL
DJ30 -74.49, -0.29%
SP400 -0.46%
RUTX -0.48%
SOX -0.23%
______________________________________
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
Alert Key
http://www.investmenthouse.com/alertkey.htm
PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.
Customer Support: http://investmenthouse.com/contact_us.php
No comments:
Post a Comment