Ordinarily, bad economic news makes traders nervous, causing them to take money out of stocks to put into bonds which drives bond prices up and interest rates down. Lately that just hasn’t happened. Six years into a program called Quantitative Easing and many still blame the Fed’s intervention for disrupting the “normal” laws of cause and effect on interest rates an the flow of money. I on the other hand just think that we are all (including the FOMC) just doing the best we can.
ADP reports that job growth has stunted: 179K new jobs were created last month compared to the 200K expected. Productivity is also reported to have decreased 3.2%, the fastest decline in six years.