At this point you have to take a “wait & see” approach to this development. In the last 6 months I have noticed a few statistics like existing home sales that for one month improved dramatically in a previous month, just so the statistic would crash the next month. I hope we are seeing a real recovery but until the unemployment numbers start going down consistently month over month, I am not going to signal any sort of opinion that would suggest that is what is happening in the economy today. I am watching the banks earnings numbers to see what they might tell us about the current situation and the guidance or lack there of going forward.
Two of the biggest U.S. credit card companies, Capital One Financial Corp and Discover Financial Services, reported lower-than-expected defaults and delinquencies in June, sending their shares sharply higher.