(As of 7:25 am pacific)
Stocks are trading slightly lower this morning after
rallying last week for the best weekly gain in 3 months. There is a lack of economic data out of the
US today which has investors weighing the prospects of more Fed stimulus. The effects of more bond buying from the Fed
may already be priced into the market as evidenced by Friday’s market
move. After a very disappointing jobs
report, the market drifted higher seeing the negative report as an open door
for more economic stimulus. The
expectations are high going in to this week for the Fed to announce additional
monetary easing. The central bank will
wrap up a two day policy meeting on Thursday.
Negative news out of Asia today seems to be what’s preventing the market
from breaking higher. Japan lowered its
GDP for the April-June quarter from 0.3% growth to 0.2%. China reported inflation rose more than
expected in August, as well as industrial output grew at the slowest pace in 3
yrs. It’s quiet in Europe today, with a
decision coming on Wednesday from the German constitutional court regarding the
country’s challenge to the stimulus plan being offered by the euro zone bailout
fund. The ruling could have a big impact
on the market later in the week. Oil and
gold are down today and the US dollar is mixed.
Interest rates are down, with the average 30 yr. mortgage rate as low as
3.51%. Volatility is slightly lower
today as well.
