March 1, 2010
SPINNING ECONOMIC DATA
The economic data rolled-out Monday mostly missed expectations so it was surprising to see headlines stating how bullish the data was. You have to hand it to the financial media for turning uninspiring data into bullish news. Personal income was only up .1% vs .4% expected while spending was .5% vs .4% expected meaning consumers were outspending income—nothing new there. Core PCE Prices were unchanged, only if you didn’t drive or eat. Construction Spending was lower and was the ISM (Manufacturing) data. So what are we seeing here?
The big news was the notion that M&A activity would increase (witness AIG deal) and much Small-Caps (NYSEARCA:IWM) would be the beneficiary as big firms gobble up smaller ones.
Volume was light which has been an ongoing trait of rallies lately. Breadth was quite positive.....READ MORE!
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