“With both unemployment and inflation in a holding pattern, the Federal Reserve is on hold too,” said David Kelly, chief market strategist at JP Morgan Funds.
“The U.S. economy has clearly shown some positive signs, the most recent jobs data have been a little disappointing while the problems of the Eurozone’s weakest members appear to have worsened,” he added in a weekly outlook. “Overall, while these mixed signals give the Fed little reason to contemplate further quantitative easing, they also are unlikely to change many minds on the timing of eventual tightening.”
The Fed has pledged to keep short-term rates near zero until late 2014.
Full disclosure: Tom Lydon’s clients own AAPL.