Wednesday, January 15, 2014

Economic Journal - Wednesday, 1/15/2014

(As of 7:30 am PST)
Stocks are off to another great start as economic data and upbeat earnings results from Bank of America added to sentiment.  Bank of America’s 4th quarter earnings beat analyst expectations and shares rose over 3% topping financial stocks.  Shares of Apple also propped up equity markets in early trade after the Chairman of China Mobile announced the recent deal with Apple would be cooperative and reported that millions of iPhones have already been ordered by customers.  Economic data has also been positive this morning.  The Empire State manufacturing index rose sharply in January, well above analyst expectations and to the highest level seen since May 2012.  The Empire State index is often a good indicator of broad manufacturing activity throughout the industry.  The producer price index rose for the first time in 3 months as well.  International stocks are adding to the positive tone today.  Stocks in Europe advanced for the 4th consecutive day and Asian markets also closed higher.  Optimism was spurred by a fresh economic growth forecast from the World Bank which lifted its outlook to a 3.2% rate world-wide in 2014.  Gold is slipping while interest rates moved higher with more money moving into riskier equities.

No comments: