Thursday, January 9, 2014

Economic Journal - Thursday, 1/9/2014

(As of 7:15 am PST)
 
Jobless claims data and news out of Europe have pushed stocks higher early.  Jobless claims fell to the lowest level in 5 weeks, to a seasonally adjusted 330,000 last week.  The monthly average of new claims also fell by 9,750.  Tomorrow’s nonfarm payrolls report will give investors a clearer picture of hiring, but all in all labor market conditions are showing signs of strength.  Also propping up stocks early was some news out of Europe.  The European Central Bank and the Bank of England left their monetary policies unchanged and reiterated their stance on keeping interest rates low for the foreseeable future.  Markets initially shot higher on the news but have slowly given back some of the day’s gains.  Gold and oil are flat with the precious metals’ 2014 outlook being slashed by Bank of America Merrill Lynch by 11% to $1,150 an ounce.  Interest rates and the US dollar are also flat.  The mood is a cautious one going in to earnings season with former Dow component, Alcoa, kicking things off after today’s closing bell.

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