(As of 7:15 am pacific)
The markets are lacking direction this morning as
investors remain worried over the fiscal cliff.
Some sharp comments yesterday from House republicans and the
administration showed both sides are far from an agreement that would avert the
automatic tax increases and spending cuts set to occur on January 1st. Thus, the “wait-and-see” mindset prevails in
the markets. On a positive note, jobless
claims fell 25,000 last week. After
rising by 90,000 after Hurricane Sandy put people out of work, we are back down
to pre-storm levels. In corporate news,
shares of Apple continue to get pummeled, down .5% today after falling over 6%
yesterday, the worst 1 day drop since 2008 for the world’s largest company. Most European markets are higher after the
European Central Bank left its key interest rates unchanged and at historic
lows. However, the central bank is not
expected to implement any new policy changes before the end of the year. Asian stocks were mixed with Japan leading
the way as political reports show the opposition party favored to win the
upcoming election. The Liberal
Democratic Party favors more accommodative money policies, which the markets
have come to love. Oil is down 1% today,
while gold is slightly higher. The
dollar is mixed and interest rates are slightly lower. Volatility is creeping up since the open and
there’s a sense the market wants to give back yesterday’s gains.
