Tuesday, January 28, 2014

Economic Journal - Tuesday, 1/28/2014

(As of 7:15 am PST)
 
After another disappointing day on Wall Street yesterday it appears the bleeding may have stopped, at least temporarily, as stocks regained momentum at the opening bell this morning.  The Dow is leading the way with near triple digit gains as the Nasdaq and S&P500 are also higher.  A disappointing durable goods report briefly stalled stocks but wasn’t enough to derail the upward momentum.  Orders for durable goods slipped unexpectedly in December as orders for aircrafts and autos dragged.  Orders for core capital goods also fell, marking the 4th decline in 6 months.  A strong report on consumer confidence surprised to the upside boosting markets.  Shares of Apple plummeted in the after market as the iPhone maker cast a disappointing earnings outlook despite beating Wall Street’s quarterly estimates.  Apple shares are down 8% in early trade.  Upbeat results from other big names like Ford, Pfizer, and DuPont softened the blow from Apple and have kept the major indexes afloat.  Asian markets finished lower and Europe is higher heading into the final hour of trading.  Gold is down 1% and oil up 2%.  Interest rates are bouncing around.  The 10 yr. treasury yield was up on the day, then swung lower after the durable goods report.  Rates are nearly flat now.  There is still a lot of global uncertainty, but the market for now at least, have come up for air. Volatility could stick around as the focus now turns to the Fed and its policy meeting tomorrow.

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