Stocks Erase Much of Yesterday's Gains
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Stocks have given back much of yesterday's 'better-than-expected' GDP gains. Currently the Dow is down 175 points, after rising 200 points yesterday.
The weakness seems to be related to a few things. One of those things is strength in the dollar. The thinking here is that the easy money policy of the Fed will crush the dollar, boosting all assets classes, including stocks. So "dollar weak=stocks up" and "dollar strong=stocks down." It's a pretty easy trade that has been working as of late. How long it will last remains to be seen.
The other cause of today's weakness is the boogeyman, also know as unemployment. Today there was a rumor floating around that Goldman Sachs is raising their October jobless loss estimates. If your remember, in September Goldman raised their job loss estimate just before the results were released to a number much larger than the consensus. They were right on the money. So while this is just a rumor, and unlikely true, people are pretty nervous.
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