(As of 7:23 am PST)
Yesterday’s late day rally has not carried over into early
trading today, with indecisive action in the first hour. A Wall Street Journal report hit the wires
late in the session yesterday suggesting that Ben Bernanke and the Fed are not
looking to hike short term interest rates anytime soon. Bernanke is set to hold a press conference
next week after the Fed’s policy meeting, and communication will likely be
directed at cooling those fears. Stocks
spiked late yesterday after the WSJ report.
International markets got a boost this morning keying off Wall Street’s
finish. Asian markets were higher with
the Nikkei rallying 1.9% and Chinese stocks were up with rumors that the
People’s Bank of China may lower its key interest rate over the weekend. European stocks are also higher in a choppy
session. On the domestic side, a few
economic reports are worth noting. Industrial
production was flat in May while wholesale prices climbed with energy and food
leading the way. Excluding those two
volatile sectors, core prices rose a scant 0.1% showing signs of low
inflationary pressure. The US current
account deficit rose by $3.8 billion to $106.1 billion in the first quarter. Lastly, consumer sentiment fell in a
preliminary reading for June, putting the brakes on the market. As it stands, markets are flip flopping
around the unchanged line. Gold is up
.8% and oil is up over 1% as interest rates are down slightly. Expect a back and forth day as we head into
the weekend.
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