normal markets

Too Much Improvement?

November 11, 2013

Markets were mostly up last week, but the pace of the advance slowed somewhat. Both the S&P 500 and the Dow Jones Industrial Average closed the week near all-time highs, while the Russell 2000 and NASDAQ lagged a bit. Even so, all four of these major averages remain very near cycle highs.

The only real fly in the ointment for markets last week was Thursday’s GDP report which sent most major averages down more than 1 percent. It must have been a bad report, right? Wrong. While the 2.8% preliminary estimate of GDP is not exactly exciting, it was quite a bit higher than the 2% that most economists had expected. The improvement continues. (more…)