Hurricane Sandy To Hit New York

Published by Filipe R. Costa on Mon, 29/10/2012 - 10:07
storm eye

Daily Market Commentary for October 29: Investors continue concerned about future prospects. Not even a better than expected GDP report could save the market. The S&P 500 declined 0.07%, accumulating a 1.48% loss last week.

US GDP numbers surprised positively as the number announced pointed to a 2% rise in third quarter. The US economy recovered a little in the quarter but investors feel there are many weaknesses in this report as consumer and business spending are still low. Government spending rose for the first time in several quarters and was one of the catalysts for the rise in GDP, but that may have to revert over the next quarters and if confidence does not rise, GDP may be in trouble again. Exports were one of the weakest parts of this report, reflecting the negative international picture.

US markets experienced ups and downs with the better than expected GDP report not being enough to led to a rally while the recent weakness is creating some buying interest again.

US markets will be closed today and probably tomorrow as the hurricane Sandy hits the country and in special the New York region. Although being a category one hurricane, it is believed it can cause heavy damage.