Monday, April 30, 2007

Don't You Just Hate That Sluggish Feeling?

Economic Report: U.S. consumer spending sluggish in March.

Stock futures actually perked up after the report's release - that old hope for lower rates thing in the face of weakness. It also helped that core PCE was less than expected as inflation becomes more closely watched by investors. Perhaps the market will also be buoyed by some final day of the month window dressing? At this point, it sure looks as if someone is looking for an excuse to buy.

While this is an unsually quiet merger Monday, here's something to chew on. In looking at Trimtabs data that a friend sent along, it is amazing to see just how large the float-shrink has been this year. Stock buybacks and cash takeovers have totaled over $400 bln this year, while insider selling and new offerings total just about $115 bln. The net effect: the market float has been shrinking over $4 bln a day.

I am going to be on the road later in the day, so posting may be limited after the trading day begins.

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