Despite a big rally by Amazon, the action in the general indexes was weak which is a troubling development. We also now have some technical issues which we will discuss below. Indexes started with modest losses and those built through the mid afternoon; a surge in the closing minutes helped mitigate losses. The S&P 500 dropped 0.51% and the NASDAQ 0.62%.
“The biggest surprise of the week was the Bank of Japan. We’re still feeling the aftershocks of that,” said Art Hogan, chief market strategist at Wunderlich Securities.
It’s “somewhat of a risk-off week probably led by the inaction of the Bank of Japan,” said Eric Stein, co-director of global fixed income at Eaton Vance Management.
Chicago PMI for April was 50.4, below expectations of 53.0 and March’s 53.6 print. Any reading above 50 is still expansionary but this one was barely above 50. Personal spending rose 0.1% in March, while personal income rose 0.4%.
“Consumers are two-thirds of the economy and they’re not spending much. It’s going to be hard to get the data to look much better without them,” said Paul Nolte, portfolio manager at Kingsview Asset Management.
A strategist from UBS is saying the “end game” is here for this multi year rally based on 2 factors – of course many have said that before and been proven wrong but if you want to see his reasons feel free to read here.
“And while age alone does not portend the definitive end of a Bull Market,” Emanuel writes, “the current rally, at 2,611 days, is now the second longest in modern history, behind only the 1990-2000 bull market.Continue reading