Stocks rose following an increase in German investor confidence as that country averted a recession as its economy unexpectedly grew during the third quarter. Equities were also positively influenced by the suspension of the increase in the Japanese sales tax, the cause for that country’s dour economic growth.
Equities were also encouraged by a health care merger and data suggesting the US is not experiencing deflation.
Will the advance continue? As noted several times I think the market is feeling “heavy” and profit taking should be expected at any juncture, a decline perhaps between 3% and 5%.
Today’s trading will be influenced by the release of the Minutes from the October 29 FOMC meeting.
Last night the foreign markets were mixed. London was down 0.10%, Paris up 0.47% and Frankfurt up 0.55%. Japan was DOWN 0.32% and Hang Sang DOWN 0.66%.
The Dow should open little changed ahead of the Fed Minutes. The 10-year is off 6/32 to yield 2.34%.
Chief Economic Strategist Managing Director
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