Market should Go back to GREEN by end of day.
because the Markets focusing on wrong data in the early going today:
Markets are falling on Industrial production numbers not being as high as expected. But keep in mind Industrial production in the USA is now only 10% of the Economy.
The USA is a majority services economy now.
The better indicator today is the housing numbers which is giving a big indication that housing has bottomed.
The Commerce Department said home construction jumped in May by the largest amount in three months. Construction of new homes and apartments jumped 17.2 percent last month to an annual rate of 532,000 units, better than the 500,000 economists had expected. Construction had fallen in April to a record low of 454,000.
Applications for building permits, an indicator of future construction activity, rose 4 percent.
Separately, the Labor Department said wholesale prices rose less than expected in May as a large jump in gasoline prices offset a drop in food costs. The Producer Price Index increased by 0.2 percent from April, below the 0.6 percent expected by analysts.
Not all the news was upbeat. The Federal Reserve said industrial production fell a larger-than-expected 1.1 percent in May as the recession hurt demand for manufactured goods including cars, machinery and household appliances.
"All in all I'm encouraged," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.