Stocks End Modestly Lower, But Within Striking Distance Of All-Time Highs Image: Bigstock Stocks closed modestly lower yesterday. But all three of the major indexes remain within striking distance of their all-time highs. With earnings season nearly over, the focus now shifts to the infrastructure package. Last week, the administration said they were open to reducing their infrastructure proposal from $2.25 trillion to $1.7 trillion. A counteroffer of $1 trillion is expected to come shortly. We will see where this package lands. But the White House has said they would like to see progress on a bill by Memorial Day. So the clock is ticking. Whatever the price tag turns out to be, that's still an enormous amount of money that will further bolster the economy. And the reduced package also means we may not need to raise as much money (higher taxes) to pay for it. Taxes are still going up. But maybe not so much now. In other news, yesterday's Redbook report showed same store retail sales grew by 13.6% y/y vs. last week's snapshot of 12.6%. New Home Sales disappointed at 863,000 units (annualized) vs. last month's 917K and views for 955K. Although, the Case-Shiller Home Price Index showed prices up 2.2% m/m (unadjusted), and 13.3% on a y/y basis. Consumer Confidence remained strong at 117.2. That was off a bit from last month's 117.5 and views for 119.5. But a 117 handle is a fine showing. Today we'll get a look at housing again with the MBA Mortgage Applications report. We'll also get a look at business conditions with the Survey of Business Uncertainty report. And we'll get a look at what professional investors are thinking/doing with the State Street Investor Confidence Index. In the meantime, the economic rebound continues. And as more of the country opens up, the more economic growth will be seen. And that suggests a lot more upside to go for both the economy and the market. So make sure you're taking full advantage of it. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research |
Post a Comment
Post a Comment