Thursday, February 20, 2014

Economic Journal - Thursday, 2/20/2014

(As of 7:25 am PST)
 
Stocks are see-sawing this morning as markets sifted through a handful of disappointing economic reports out of China and the US.  Stocks retreated in the afternoon yesterday after minutes from the latest Federal Reserve policy meeting revealed some dissension among Fed members of when short term rates would rise.  Markets were met with more disappointment at today’s open as several economic reports hit the wires.  China’s flash manufacturing PMI for February came in lower than expected, dropping to a reading of 48.3 from 49.5, a seven month low and still in contractionary territory.  Markets in Asia finished the day lower.  In the US, a mixed bag of data kept the tone cautious early.  Jobless claims fell slightly from 339,000 to 336,000.  February’s flash manufacturing PMI surprised to the upside rising to 56.7 from 53.7, hitting a 4 year high.  The Philly Fed report painted a conflicting view of manufacturing, with the index dropping in January to -6.3 from 9.4, the first negative reading in over 8 months.  In company related news, shares of Tesla soared after the bell yesterday as the company topped earnings estimates.  Gold, oil and other commodity prices are lower as the US dollar inches up.  Interest rates are also higher.  The back and forth trade could give way to more selling pressure later today as most data fell short of expectations. 

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