Eagle Eye Opener: U.S. Consumer Spending Rises by Most in Five Months; Tremendous Market Risk Lies Aheard, Expert Warns; IPOs Raise $20 Billion in First Quarter 2013

Eagle Eye Opener

U.S. Consumer Spending Rises by Most in Five Months (Bloomberg)

U.S. consumer spending rose in February by the most in five months as incomes increased, indicating an improving job market is boosting demand. Household purchases, which account for about 70 percent of gross domestic product, gained 0.7 percent after a 0.4 percent advance the prior month that was larger than previously estimated, the Commerce Department announced today. The median estimate in a Bloomberg survey of 78 economists called for a 0.6 percent rise. Incomes increased 1.1 percent, more than projected, sending the saving rate up from a five-year low. Labor market progress and an increase in household wealth tied to rising home values and stocks are cushioning Americans from the fallout of higher payroll taxes and costlier fuel. Strength in purchases is one reason economists project the economy to pick up this quarter after slowing to a 0.4 percent annual rate in the final three months of 2012.

The question becomes whether consumers have been feeling a false sense of confidence before the effects of the sequester and continuing federal deficit take hold.

‘Tremendous Risk’ Lies Ahead, Market Forecaster Warns (Yahoo.Finance)

A “big bear market” could be ahead as the market seems to be nearing a top,  said Steve Hochberg, chief market analyst at Elliott Wave International. “There are a lot of things going on in the periphery that we think are going to have consequences [for the market] as we move forward throughout the year,”Hochberg said. “I think there is tremendous risk in this market, and one of the reasons is because no one thinks so right now.” For investors, the adage “buyer beware” seems appropriate at this stage of the market rally.

Exclusive  Rising Odds of Recession in Europe Pose a Risk to U.S. Rally

IPOs Raise $20 Billion in First Quarter 2013 (Bloomberg)

Initial public offerings (IPOs) raised almost $20 billion worldwide in the first quarter, as Pfizer Inc. (PFE), Goldman Sachs Group Inc. and others took advantage of a booming stock market to sell businesses. IPOs generated 18 percent more than in the year-ago period, led by Pfizer’s $2.6 billion sale of its animal-health unit Zoetis Inc. (ZTS) and Goldman Sachs’s offering of shares in German apartment landlord LEG Immobilien AG, according to data compiled by Bloomberg as of March 27. However, IPOs declined to about half of the level of the fourth quarter, when companies raised about $37 billion. So far, individual investors seem to be holding back on cashing out as the market keeps climbing.

share on:

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader


Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor