Stocks Rise on Data for Strong Manufacturing Growth; Dollar Drops Against Euro, Yen Falls; Millenials and Student Loan Debt
Stocks climbed today, sending the S&P 500 to rebounding from its first monthly loss since last October, as reports indicated improvement in Japan’s manufacturing bolstered confidence in the global economy. “We’re in a period where good news is likely to be received well by the market,” John Roscoe, a senior portfolio manager at Roosevelt Investment Group Inc. in New York, said. “The stock market has already mostly digested the fact that rates are going to be higher. If we get confirmatory data, all else equal, it should imply better things for companies.”
Dollar Drops Against Euro; Yen Falls (Reuters)
The dollar fell against most currencies today, while the yen slid to its lowest level in nearly four weeks versus the greenback. Better-than-expected manufacturing data from Europe and Japan sparked investors to seek offsets with higher returns. “The (U.S.) data is not that strong that it changes the Fed equation meaningfully, other than it fits with the U.S. manufacturing sector stabilizing after a soft patch, and works with the idea of reduced downside risks,” said Alan Ruskin, head of G10 FX strategy at Deutsche Bank in New York.
Millennials seem to be trapped in a Sisyphus-like effect when it comes to their debt. They desire to climb the work ladder to reach self independence, yet they are saddled with tens of thousands of dollars of student-loan debt. What’s fueling this vicious cycle? Rising tuition costs and a weak job market — and on top of that, federal student loan borrowers may see their interest rates double unless lawmakers strike a deal to extend a 2007 law that cuts rates, which expires today. “You could have generations that never get in the economic mainstream,” says Ted Beck, president and CEO of the National Endowment for Financial Education. “If you never get into the whole U.S. economic system because you’ve been held back by too much early debt … we could have a lot of people who just never really come anywhere near their potential.”