5/28/15 Market Recap:
Equities took a breather yesterday with uncertainty in Europe and weakness in the Asian markets driving markets lower. Stocks moved down from the beginning of the session, reaching the day’s lows by mid-morning, but were able to pare most of the losses and close with only marginal declines at the end of the session. Most of the ten sectors were similarly lower though Utilities, Materials, and Healthcare managed to eke out slight gains. Economic releases of the day, meanwhile, were primarily positive. Pending home sales increased by 3.4% in April, its highest level in more than nine years, while initial jobless claims remained consistent with a strengthening job market despite rising higher than expected.
Futures are heading in the negative direction this morning, ahead of the second estimate of first quarter GDP. After showing meager first quarter growth in the first estimate, economists are expecting a downside revision that would show that the economy actually contracted in the first quarter. Just how great this revision will be is the ultimate question. Any significant deviation to the up or downside will throw a wrench into expectations and once again throw the market into another round of Fed rate hike speculation. Though volatility has been greater this week than the last few, it hasn’t translated into too much movement for the markets with up days followed by down days and vice versa. Through the end of Thursday’s session, the major averages were split between marginal gains and losses with the Dow index lagging at -.58% for the week and the Nasdaq leading with a meager .17% gain.
Be sure to listen to Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic and market analysis. This week, Gary’s guest is former press secretary and political commentator Dana Perino. Visit www.ggfs.com for details.