Thursday, February 6, 2014

Economic Journal - Thursday, 2/6/2014

(As of 7:20 am PST)
 
Equity markets are higher this morning with the Dow up over 100 points.  Investors cheered a surprising jobless claims report before the opening bell that showed applications for unemployment benefits fell 20,000 last week to 331,000.  Other economic data showed US productivity grew 3.2% in the 4th quarter, just shy of analysts estimates.  However, the past two quarters recorded the highest growth since 2009. Lastly, the US trade deficit climbed by 12% in December in large part due to lower sales of heavy goods like airplanes and business equipment.  A bright spot was the continued strength in the US oil industry as oil exports hit a record high of $13.5 billion.  Overseas action was also positive with Asian markets finishing the day mixed, while European markets applauded the ECB’s move to keep interest rates low.  In earnings related news, shares of Twitter plummeted after their first public earnings report failed to meet expectations.  Shares were down 20% to open this morning.  Gold is down slightly today while interest rates are higher.  Fears still remain over the implications of the Federal Reserve taper on global markets but in the short term it appears the markets are trying to find their footing again.

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