The Weekly Market Snapshot from Frazier Allen
June 12, 2010
Market Commentary by Scott J. Brown, Ph.D., Chief Economist for Raymond James Investment Services
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
The economic data were generally soft, consistent with a lackluster-to-moderate pace of economic growth. The Federal Reserve’s Beige Book noted that “economic activity continued to improve since the last report,” although most Fed districts described the pace of growth as “modest.” Retail sales were much weaker than anticipated, falling by 1.2% in May, down 1.1% excluding autos. Weakness was concentrated in building materials, which could reflect the acceleration in March and April (due to the pending expiration of the homebuyer tax credit). Ex-autos, building materials and gasoline, sales edged up 0.1% following a 0.2% decline in April.
The stock market mood remained negative, with plenty of intraday volatility. However, Chinese export data suggested that the European debt crisis has not had a major impact on foreign trade. Global equity markets improved on that news and short-covering may have exaggerated the impact in the United States. The disappointing retail sales figures dampened the mood again on Friday. [Read more]
