Optimism in Financial Markets Fails to Show in Real Economy

Surging optimism in financial markets hasn't translated into a big pickup in economic growth. Stocks hit records Friday and big U.S. banksreported stronger-than-expected earnings. But new government data showed consumers pulled back spending at mid-year even as markets rallied. Households also grew less optimistic about the future and inflation on consumer purchases softened.

Here's a summary of the article from Axios:

1. "Stocks hit records [yesterday] and big U.S. banks reported stronger-than-expected earnings. But new government data showed consumers pulled back spending at mid-year even as markets rallied. Households also grew less optimistic about the future and inflation on consumer purchases softened."
2. "Trump has set out an agenda to push economic growth well beyond the roughly 2% pace that has prevailed since the recession ended in 2009, but so far there is little sign of a real breakout happening."
3. Be smart: "Markets--as they sometimes do-- took bad economic news as good investment news."
4. Why it matters: "The president has suggested a number of policies to spur growth, including a tax overhaul and major infrastructure spending, but those aren't yet close to reality."