Wall Street Webcasting presents exclusive video of Rich Gordon, the highly regarded Fixed Income Market Strategist of Wells Fargo Securities (NYSE: WFC). This week, Gordon discusses the current standing of the U.S.’s economy, based on recent data results releases.
The Nonfarm Payrolls report for the month of February came in at 175,000, which exceeded the expectations of the Wells Fargo economic analysts by almost 25,000. This came as somewhat of a relief, being that it broke a long streak of more disappointing results. However, there is no sign of a turn around in China’s mediocre economic data. The decline of exports in China is the lowest that it has been in the last 5 years, and it seems that their goal of reaching a 7 ½% GDP by the end of this year is out of reach, which is considered to be a risk to investors.
A slow down in China’s market has had a profound effect on emerging markets within the last few weeks. For instance, Brazil’s emerging market has already had a shaky initiation into the year, being down almost 10% year to date. Also, key commodities such as copper have already seen significant losses.
On the up side, stocks have held their ground and traded well again last week, with the S&P at another all time high. There is only one area of concern for investors, and that is that the S&P had reached a short-term overbought level, with an RSI of 70.
To hear a more in depth analysis of the current state of the U.S. economy and emerging markets, please tune into Wells Fargo Securities latest video.
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