Thursday, August 8, 2013

Economic Journal - Thursday, 8/8/2013

(As of 7:00 am PST)
 
Positive earnings reports have set the stage for a morning surge.  Tesla Motors a darling of investors over the last few months is soaring 15% after a beat on earnings and revenue.  Tech company Groupon is also up strongly.  There is a sense of optimism today for investors.  Gold is up slightly, while oil is down a bit.  The US dollar is falling against most currencies, propping up commodity prices. Interest rates continue along a stable path and should continue to support the surge in home sales and home prices.  Jobless claims are stabilizing at a positive range as well. Still lurking, and likely to set a short ceiling on market gains, is the fact that Fed tapering is likely to occur sooner than later.  Volatility is likely to pick up as political squabbling over the debt limit surfaces over the next couple of weeks.  As earnings season winds down it seems that the resulting void will to lead to profit taking and a mild correction.

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