Rally Vanishes, As Weak Economic Data Suckerpunches Strong Earnings

polar bear melting ice

Photo: Associated Press

So if it isn’t dead obvious right now, the tension is between strong corporate earnings, and weak economic data.So, for example, this morning we had some good earnings data from SAP, BP, UBS, and DuPont.

But then the economic data came in, and we got three weak(ish) reports from: Case Shiller (housing), consumer confidence, and just now the Richmond Fed.

And it seems that today investors are choosing to pay attention to the weak econ data, rather than the strong earnings data.

It’s not that we’re seeing a major decline, but at one point the markets were up solidly, and now they’ve dipped into the red, threatening to kill a three-day win streak.

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