Will sequestration impact the stock market
With the sequestration deadline come and gone, U.
The Dow Jones Industrial Average NYSEARCA: The Nasdaq NYSEARCA: SPY demonstrates the continued sideways action of this major U. Resistance and support levels are clearly defined and this channel has now been underway for a full month. The issues remain the same as the President pushes for a mix of spending cuts and tax increases while the Republican controlled House of Representatives says that tax increases won't be a part of this package.
Remember sequester? It's hurting the economy - Oct. 18,
The cuts will echo far and wide across the Federal and state level and how long this might go on or how deep the pain might be remain unknowns. Federal Reserve Chairman Ben Bernanke spent two days testifying before Congress and his words seemed to have a calming effect on global stock markets as he defended his quantitative easing policies and gave no indication that they would be changing or ending anytime soon.
The economic news for the week was largely positive with initial jobless claims falling more than expected and ISM and Chicago PMI reports beating expectations.
Defense company stocks have soared since sequester’s ax fell | TheHill
Durable good orders rose and January new home sales jumped to , from the previous month's , Consumer confidence continued to climb in spite of a sharp decline in in personal income with a fall of 3. In spite of the good news, a surprisingly weak Q4 GDP estimate put growth at 0.
Fiscal Cliff
Europe had a tough week with major sell offs in Italy after its national election, and PMI reports from Europe painted a dismal picture with Spain, Italy and France all coming in below the 50 level that signifies the boundary between contraction and expansion. The upcoming week brings ISM Non Manufacturing numbers on Tuesday, ADP Unemployment, factory orders and Fed Beige Book on Wednesday, weekly jobless claims, household debt and unit labor costs on Thursday, and Friday rounds out a busy week with the closely watched February Non Farm Payrolls and Unemployment reports.
And, of course, much attention will be paid to the ongoing standoff over the sequestration spending cuts and how potential furloughs, spending cuts and job losses might affect the U.
Major stock indexes and ETFs largely continued to ignore the potential impact of the upcoming sequestration cuts and deepening problems in Europe. How long this can go on remains to be seen, however, for the week just ended, investors appear to have decided that all is well with the world. The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector's Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.
Stock Market Shrugs Off Sequestration Cuts For Now Mar. Wall Street Sector Selector.
On My ETF Radar chart courtesy of StockCharts. Macro View , Market Outlook.
Markets Shrug Off Sequestration | Fox Business
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