(As of 7:10 am PST)
Stocks opened mildly higher this morning after a late session
rally yesterday saw the Dow finish with triple digit gains. The only major economic report out today
showed the US trade deficit rising 8.5% in April, led mostly by a surge in
Chinese imports. The trade gap widened
less than expected sending treasury prices lower. European markets are mostly higher midway
through trading as a report on Spanish unemployment came in better than
expected. Asian markets are mixed with
the Nikkei recovering some of yesterday’s losses. The Reserve Bank of Australia announced it
will keep its key interest rate unchanged at 2.75%, however with a low threat
of inflation the central bank left the door open for future rate cuts. It’s a quiet morning compared to yesterday,
however activity should pick up as several Fed officials are due to speak later
today on the economy and the government’s role in job creation. Two of the speakers are voting members of the
FOMC which makes decisions on monetary policies. Investors will be paying close attention to signs
of whether the Fed will begin tapering its monthly bond purchases. With 20 straight weeks of Tuesday gains, can the market keep the streak alive? We'll see!
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