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Mixed news regarding the economy ultimately leads to rising U.S. stocks

Two major market forces competing at opposite ends of the spectrum are ultimately leading to rising U.S. stocks.

Starting off with the market forces that are leading to the economy slowing down, among one of the leading factors at this point has been the lack of relevant manufacturing activity within the state of New York. The rate of manufacturing slowing down within the state has plunged to near historic levels, the likes of which have not been since the Great Recession, according to Business Insider. The unflattering picture of the New York manufacturing scene is leading to poor confidence and a sore spot in the economy.

Another market force causing a good bit of consternation within economists in the United States has been the value of the Chinese Yuan. Last week's surprising news that the Yuan's value dropped by as much as four percent sent shockwaves through both the global and local markets within the United States.

Fortunately, the downward trend of the Yuan was halted not long after the troubling news broke, with China able to slow down its decline and bringing stability back to the markets if at least temporarily, according to Reuters. It's unclear if the Yuan will be able to bounce back rapidly within the next few days or perhaps weeks, but the positive news is that the U.S. economy may be able to weather the outcome no matter what it may be.

According to Bill Strazzullo, the chief market strategist at Bell Curve Trading, news of the U.S. economy managing to withstand the devastating news of the Yuan's drop is promising, suggesting that investors are continuing to remain confident in the face of troubling headlines abroad.

Another positive sign for the U.S. economy has been the recent showing of optimism among homebuilders that is at its highest levels since the housing market was at its peak about 10 years ago, according to the Los Angeles Times. The good news on this front has led to U.S. stocks trending up even in the face of some concerning news elsewhere.

As for other news that may help tell the tale of how this week's economic story will play out, investors will be paying close attention to important earnings reports due out before the end of the week. Large U.S. retailers will be filing the said reports, including companies such as Gap, Lowe's and Target.


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