Great Expectations – It’s always tough when markets start the day with healthy gains, especially at new ATHs. Either they can continue higher based on the pre-open reasons for the gains, or expectations catch up to reality, and that opening level fades. Today’s action has been that second point. Earnings from Apple (u/c) and Facebook (+6.2%) were fantastic, and the latest Q1 GDP reading of 6.4% (driven by 10.7% personal consumption annualized) was also strong. But stocks look to the future, and the debate of whether this level of earnings/ GDP strength can be maintained is triggering some profit taking (although the S&P is still +30bps currently). Looking ahead, traders will get a healthy does of eco data tomorrow; Personal Income and Spending are expected to show monthly gains, while the Fed’s preferred inflation PCE data will be announced. Some other notables:
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