The three major stock markets' indices were slipping in value on Tuesday morning, as a consequence of assorted smaller-cap retail stores pulling back.
Wednesday, May 21, 2014
The US Federal Reserve is prepared to release minutes from its most recent policy meeting, which was late last month. Policy makers have credited the US economy with demonstrating growth. After 10:20 a.m. in New York on May 20, the Nasdaq Composite Index edged down 0.47 percent, a slip of 19.58 points to 4,106.66; the Standard & Poor's 500 fell 0.36 percent, a loss of 6.67 points to 1,878.45; and the Dow Jones Industrial Average minimally 0.42 percent, a loss of 69.22 points to 16,442.64.
In addition to retail earnings' slippage, equities also have drawn down at least 1 percent over the past seven days, according to Reuters. Equities notched record highs on May 13, spurred higher by economic data indicating some volatility ahead.
But the economic data was also underwhelming as it did not verify the rapid pace of growth and development that many investors, traders and analysts had anticipated. Aiming to close the economy-spurring stimulus program, the U.S. Fed has slashed monthly asset purchases by $10 billion per month for the past four months. The minutes from the April 29 and 30 meeting are likely to shed light on the body's thinking.
The Wall Street Journal reports significant data regarding households is also impacting markets. Almost 10 million households in the U.S. are living in homes that are not worth as much as their mortgages. This trend is indicative of why the recovery within the U.S. housing market is moving at a slower pace.
When the first quarter of this year closed, an estimated 18.8 percent of homeowners in the U.S. were considered "underwater,” an industry source notes, according to the news source. Almost that same amount holds equity in their homes that is 20 percent or less. That provides circumstances that make the process of selling their homes more challenging because they have to dip into their savings in order to successfully navigate the process.
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