It shows corporations are ready to raise prices. I see a short-term upside for the market that will last, maybe, into tomorrow.
Stocks are really feeling the brunt of the expectation of higher rates. The market is down not only because of the change in language in the Fed statement, but because the Fed was not clear about the timing of the rates, and the market wanted more certainty.
Short-term, what the market is taking from the GDP report is that inflation is higher, and there's less economic growth than we thought, and that's putting a crimp on things today,
The market lifted on an anticipated resolution of the port issue. But it's a very temporary thing; it's not going to lift us out of any of the nervousness that's been pulling markets lower. It's a one-day love affair.
I think the market is performing fine. We're due for a little rest and that's what you're seeing. We've had some nice days, but the volume is light, the dollar is a little weaker, and traders don't want to hold their positions ahead of the weekend.
With a slowing economy, banks loan less, ... It's disappointing that the market can't rally on rate cuts.
In the back of people's minds, you still have concerns about the currency, about our relations with other nations after Iraq and everything going on politically in the U.S., and it's making the market a little indecisive right now.