The stock market seems like it needs a rest today.After posting strong performances earlier this week following growing optimism about the economy and the reappointment of Federal Reserve Chairman Ben Bernanke, the main indexes appear headed toward a muted opening. The Dow Jones industrial average and the Nasdaq Composite Index were trading down in pre-market action.
Whether this rally will hold depends on a few things. The U.S. Commerce Department is due to issue its durable goods report for July later this morning. As the Associated Press notes, "Economists polled by Thomson Reuters predict orders to U.S. factories for items expected to last at least three years increased 3 percent in July, due in part to increased auto sales from the government's Cash for Clunkers program." They fell in June.
Also, investors will get more data to confirm the opinion of some economists that the housing market has begun to recover. Data from the Commerce Department is expected to show new home sales likely rose 1.6 percent last month to a seasonally adjusted annual rate of 390,000, from 384,000 in June, the AP said, citing data from Thomson Reuters.
Some pundits, including Nouriel Roubini, have fretted about a so-called double dip recession, which could leave a path of economic destruction in its wake. Others say Roubini and his followers are overly pessimistic. Meanwhile, short-selling rose in the first half of August.
Only time will tell which side is right.
Some pundits, including Nouriel Roubini, have fretted about a so-called double dip recession, which could leave a path of economic destruction in its wake. Others say Roubini and his followers are overly pessimistic. Meanwhile, short-selling rose in the first half of August.
Only time will tell which side is right.
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