Daily Data Flow: S&P Falls after Six-Week Climb; Central Bank Comments Boost Euro; State of the Union »
Stocks Fall after Six-Week Climb (Bloomberg)
Today, after six weeks of gains, culminating in the S&P 500′s highest point since late 2007, the S&P fell 0.1% as stocks fell. “We’re extremely overbought, but that doesn’t mean the market can’t continue higher,” T. Doug Dale, chief investment officer at Jackson, Mississippi-based Security Ballew Inc. Wealth Management, said. “But investors must be wary of air pockets, as in major downturns that can happen quickly.”
Euro up on Official Comments (Reuters)
Coming back from its lowest point against the dollar in weeks, the euro rebounded today after a policymaker from the European Central Bank commented that the currency is not currently undervalued. “Given the fragility of the markets lately, that was all it took to bring the single currency above $1.3400 and test the $1.3430 resistance area,” said Matthew Lifson, senior analyst and trader at Cambridge Mercantile Group in Princeton, New Jersey.
State of the Union Expected to “Accentuate the Positive” (CNBC)
President Obama’s annual address tomorrow night is expected to mention the United States’ economic recovery but give few details beyond that. According to analysts, the speech will instead focus on issues like immigration and gun control. Concerning the economy, “I don’t think any major policy initiates is going to come out of it,” said Jim O’Sullivan, chief U.S. economist at High Frequency Economics. “The most immediate thing is in terms of the budget sequester, but I can’t imagine he’s going to say anything that will break the deadlock.”