(As of 7:15 am PST)
The market has given back most of yesterday’s gains in
the first hour of trading as investors reacted to disappointing earnings. Bank of America missed earnings expectations
dragging the stock down 3%. Yahoo and
Intel weighed heavy on tech stocks as Intel projected an 8% decline in revenue
in the current quarter and Yahoo also missed on the top line. Gold prices are trading nearly flat after
gaining back 2% yesterday. The precious
metal is still under major pressure after dropping over $200 an oz. in two
trading days, including a 9% selloff on Monday, the worst single day loss since
the 1980’s. Economic reports are light
today, although later this morning the Fed will release its monthly Beige Book,
with a survey of current economic trends and conditions. Most of the 12 Fed districts are expected to
report growth but perhaps at a slightly lower pace. In international news, European markets are
trading lower and Asia finished down except for Japan’s Nikkei. The US dollar regained footing on the Japanese
Yen after falling back earlier this week.
Interest rates are lower today and the volatility index is up
substantially. The gold selloff on
Monday has sent some real jitters into the market with investors reevaluating
the landscape and repositioning assets as we head in to the thick of earnings
season.
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