(As of 7:20 am PST)
Stocks are slipping this morning despite a surprise
narrowing to the US trade gap. The
Commerce Department reported this morning that the US trade deficit shrank
22.4% in June to $34.2 billion, the lowest level since 2009. The sharp decline reflected higher exports
and lower imports. A smaller deficit is
a positive for GDP as it means we are buying more of our own goods and
services. Markets shrugged the positive
report as investors grappled with comments made by Atlanta Fed President,
Dennis Lockhart. In an interview,
Lockhart discussed the likelihood of the Fed tapering its asset purchases as soon
as its next meeting in September. Tapering
has been and will continue to be the main threat to the market for the
remainder of the summer. European
markets are looking to hold on to their seventh straight day of gains, while
Asian markets closed mixed. Commodities
are getting hit hard, with gold breaking through $1300 per oz. on the comments
from Lockhart. It looks like a day of
profit taking with ‘taper’ talk ruling the day.
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