Daily Data Flow: Stocks End Higher on Stimulus Optimism; Economy Expands Less than Expected; Dollar Falls

Daily Data Flow

Stocks Finish Higher Amid Optimism for Stimulus (CNBC)

Though stocks shaved their gains in the final hour of trading today, they still ended modestly higher with the DOW recovering from its worst one-day drop in nearly four weeks, as the latest round of weak economic data suggests the Fed’s bond-buying program would remain intact. “After some early hesitation, the market got in gear on the upside with leadership from the semiconductors and financials, the kind of leadership you like to see if you are a bull,” he said. “[Meanwhile,] in the last few days, many defensive names have come under pressure as money flowed out of them into cyclicals. The catalyst was the 10-year yield staying over 2 percent and the perception that the economy was getting stronger.”

Economy Grows at 2.4% Rate, Less Than First Estimated (Bloomberg)

The economy expanded less than previously estimated this first quarter as slower inventory building and cutbacks in government spending overshadowed the biggest gain in consumer purchases since 2010. However, strong consumer spending, further housing market progress and jobs gains will allow Americans to sustain their finances as the fallout from federal budget cuts subsides. “The economic outlook is still favorable,” said Millan Mulraine, an economist at TD Securities USA LLC in New York, who correctly forecast GDP. “It’s still fairly robust growth driven by consumer spending. We expect an acceleration in the second half as the economy moves beyond the current soft patch.”

Exclusive  The Illuminating Irony of Place, Time and Tax Cuts

Dollar Falls on Weak Economic Data, Stimulus Tapering Questionable (Reuters)

The dollar fell to a three-week low against the euro on weak economic data, which has dampened expectations that the Federal Reserve will reduce its monetary stimulus soon. Further, analysts have suggested that weaker data could reinforce expectations that the Fed needs a lot of monetary stimulus, but Fed Chairman Ben Bernanke has recently argued that the stimulus needs to be tapered down. “We need two things, according to Bernanke, to consider tapering. That is, we need stronger data and we need more confidence of sustained improvement. And today’s data simply does not support that conclusion,” said Michael Woolfolk, senior currency strategist at BNY Mellon in New York.

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


img
previous article

Smithfield Foods, the largest U.S.-owned hog producer and pork processor, soon may be merely the largest U.S. asset held by the world’s biggest meat processing company, China’s Henan Shuanghui.

PREMIUM SERVICES FOR INVESTORS

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

LEARN MORE HERE

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

LEARN MORE HERE

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

LEARN MORE HERE

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

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

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.

LEARN MORE HERE