The Fed has just announced that they are easing their bond buyback program by $10 billion to $25 billion per month, sighting an improved labor market and decline in unemployment. The markets have reacted to the news with slight improvement. We are seeing some overall lower numbers on the DJIA & the S&P; while the NASDAQ is showing some strength, partially due to Twitter’s better-than-expected earnings. The irony of the market’s weakness today is that the Q2 GDP numbers were revealed to be stronger than expected… which one would think may push the markets higher. However, coupled with the GDP numbers comes the looming fear that the stabilizing & improving economy may in turn cause the Fed to speed up the raising of the Federal Funds Rate.
GDP surged 4% in the second quarter after a less-than-stellar first quarter, which was hindered by the harsh winter conditions. Employment growth, as well as strong indicators from the factory and services sectors, has helped increase overall confidence. Consumer spending, which plays a huge role in measurable economic activity, has also been moving forward at a pace of 2.5%
In local economic activity, on any given day on any given street, one can see home & roof repair being done as home owners finalize repairs from the hail storm in May. It is always important to get a minimum of 3 estimates for any major repair job, and do your homework before hiring any contractors. Recommendations from friends or neighbors are always a good place to start, in order ensure the most reliable and fully licensed contractor is entrusted to the task.