Tuesday, May 14, 2013

Economic Journal - Tuesday, 5/14/2013

(As of 7:23 am PST)
 
The market is snapping back after yesterday’s losses.  Data is light today but included a Labor Department report that showed import prices fell 0.5% in April.  Also, an index that measures optimism among small businesses rose in April after falling in March.  The tone in the market is generally positive today as investors needed a day to shake off fears of the Fed’s exit strategy from its bond buying program.  Speaking in Stockholm today, Philadelphia Fed President Charles Plosser reiterated his views that the Federal Reserve should consider its strategy to slowdown asset purchases by the end of the year.  Plosser was quoted directly about the Fed's bond buying in a Wall Street Journal article released late Friday that had investors in a tizzy over the weekend.  Plosser remarked today that he expects US unemployment to be near 7% by the end of the year.  In company news, Yahoo is getting a boost after an analyst raised its price target on the stock, and Sony shares are up 10% after an influential hedge fund manager urged Sony’s Chief that the company ought to be broken up.  Internationally, Asian markets finished the day mostly lower and Europe is on the rebound after a positive report on industrial production showed production rising 1% in the Euro-Zone in March.  Oil prices are lower today as the International Energy Agency (IEA) said strong oil production in the US is expected to outpace demand from emerging economies.   Gold prices are also slightly lower on the day.

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