Tuesday, January 7, 2014

Economic Journal - Tuesday, 1/7/2014

(As of 7:20 am PST)
 
Stocks are rebounding from yesterday’s losses with the S&P500 looking to snap a 3 day losing streak.  Economic data is very light today.  A report on the US trade balance has caught some attention however.  According to the Commerce Department, the US trade deficit dropped to $34.3 billion in November from $39.3 billion in October, to the lowest level seen in 4 years.  The drop can mostly be attributed to strong US exports which have climbed 5% over the past year.  The booming energy industry is benefitting the US on both sides as demand for foreign oil is slowly declining and oil exports are picking up.  The market was surprised by the trade balance report and forecasters are reconsidering the impacts on GDP growth in 2014.  International markets look strong with good news out of Europe. Gold is down $10 per barrel while oil is up slightly.  Interest rates are treading water with the 10 yr. treasury yield hovering just below 3%.  The new year is in full swing with 2013 returns in the rear-view mirror.  Earnings season, Fed minutes, and a jobs report, all on tap for this week, will help provide some clear guidance for the first month of 2014.

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