The US economic recovery continues to show signs of strengthening

The US economic recovery continues to show signs of strengthening. Fourth quarter GDP was revised upwards from 2.4% to 2.6%. Let's not mistake that for rapid growth, but it's definitely a step in the right direction. The overall boost was due to strong consumer spending, especially in health care. What's more, jobless claims dropped this past week to 311,000. That's the lowest number since last November and continues a strong downward trend. Meanwhile, the markets have been choppy at best. The relative sideways action will continue as long as positive US news is being countered by increasing geopolitical risk. However, US equities could soon see some real action as next quarter's earnings season is already almost upon us.