A pair of US economic reports resumed the pre-election run of improved US data; however, following the brief journey higher, stocks resumed their downward path yesterday to suggest the post-election stock market swoon might continue. The uptick proved a head fake, and markets instead chose to focus on the fiscal cliff, the trifecta of expiring Bush-era tax cuts and planned spending cuts with a debt ceiling crisis that could erase 4% from US GDP, driving the economy into a recession next year. There was more that drove the NASDAQ and S&P500 below their 200-day moving averages and the DJIA well below key support at 13000, however, as a Greek deal grew more distant, reigniting eurozone worries, and France’s economy appeared headed into recession territory while Germany’s economic strength ebbed. US futures are down again this morning, with the DJIA off 0.3%; the S&P500 down 0.2%; and the NASDAQ futures 0.1% lower. |