Stocks are drifting to the lows of the day on the back of another round of weak economic numbers. The weekly jobless claims remained high (see earlier blog post) and the Philly Fed reading fell to a -16.7, well below the estimate of 0.
Combine that with weak manufacturing numbers out of Germany and China last night and it was the perfect storm for investors to continue selling after the markets best 4-day winning streak of the year ended yesterday.
The one silver lining I see out of today's economic numbers is that it is one more reason for the Fed and other central banks around the globe to ease monetary policy further. The odds of QE3 and other actions from foreign countries increased again today and I believe it is almost a certainty in the next couple of months. If I am correct it will result in a rally in stocks and commodities and a drop in the US Dollar. This is one major reason I remain bullish on the US and emerging market stock markets.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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