Flight to Where?

By David Brown, Chief Market Strategist, Sabrient Systems

Last week’s rally gave us the first positive week in a month, and it continued today, with the S&P 500 gaining a robust +3% in one day and barreling through the theoretical ceiling of 1200, to close at 1210.

Though the Federal government avoided a debt default with an eleventh hour deal for raising the debt ceiling, investors are apparently unimpressed—especially given the uninspiring economic reports. This week, the Commerce Department reported that personal spending in June fell for the first time in two years. This was coupled with the weak ISM manufacturing report and last Friday’s weak GDP report.