Thursday, July 25, 2013

Economic Journal - Thursday, 7/25/2013

(As of 7:28 am PST)
 
It’s another mixed start for stocks with the Dow in the red, while the Nasdaq and S&P are inching higher.  The Commerce Dept. reported this morning that US durable goods orders rose 4.2% in June, for the third straight month of gains.  Also, orders for May were revised upward from 3.7% to 5.2%.  The positive activity signals strength in the manufacturing sector of the economy.  Jobless claims rose 7,000 to 343,000 last week, however average claims over the most recent month (a more reliable figure) fell 1,250 to 345,250 showing signs that the labor market is maintaining.  Earnings reports continue to drive markets.  Facebook is leading tech gains with shares up 27% as the social network reported better than expected earnings on Wednesday that blew away analyst estimates.  General Motors, Dow Chemical, and Xerox were other big names that reported strong earnings.  Asian markets finished lower on weak company earnings, while investors were also disappointed in the size and scope of the Chinese stimulus package announced on Wednesday.  Europe followed suit with most indexes in the red.  Gold prices are higher by 0.5% while interest rates continue to tick higher.  It appears another quiet day is in order with earnings driving market direction. 

No comments: