When the government opens back up and the economic data begins flowing again the market will need a new theme. Taper talk will rage again but what if the US economy continues to muddle along? How can the Fed justify tapering without knowing how much the shutdown and plunge in consumer confidence hurt?
The Empire Fed is a secondary indicator but it’s all we have at the moment and it fell to the lowest since May with the employment component barely above water.
Empire Fed
Then again, maybe the concerns are overstated and the economy is humming along. Corporate earnings are heating up now and they will be the best measure of the economy in the near term. Cola-Cola said sales volumes rose 2% in the quarter in North America. Earnings from Citi and Johnson & Johnson were mixed but are hardly barometers of the broader economy. After the close today, Intel reports and that could offer a compelling look at the economy.