Stronger GDP Supports Soft Landing Thesis
The market is getting a big boost in early trading from the upwardly revised GDP report. Q3 GDP was revised to +2.2%, from previous estimates of +1.6%. Additionally, the inflation component of the report was steady at +1.8%.
This provided a big boost to stocks, and also caused bond yields to fall again, due to the benign inflation data. The yield on the 10-year dipped to 4.48%. I still believe the inflation hawks are fighting yesterday's battle.
After yesterday's up day in the market, the bears have to be wondering, "Is that all there is?". It would be fitting for this market to only offer a one-day, sharp correction, and then resume its steady uptrend. I am not saying that is how it will surely play out, but it wouldn't surprise me.
In other news and notes:
- CHS does not offer guidance, but stock goes up
- San Diego votes to ban Wal-Mart supercenters
- Asian stocks climb to 6-month highs
- Bear raises tgt on AAPL to $100
- 2 firms bullish on NTRI after analyst day
- Ford says 38k have opted for buyouts
- COMS buys out JV partner in China
long AAPL, CHS