(As of 7:20 am PST)
Markets are recovering slightly after yesterday’s
pummeling saw the Dow shed over 300 points on the worst trading day since last
June. It’s very quiet data-wise today,
with a report on US factory orders showing orders slipping 1.5% in December.
Earnings have been mixed as well today.
Positive reports from Michael Kors, Pfizer, Yum Brands, and JCPenney
have helped certain sectors. The other
big headline is Microsoft’s naming of its new CEO. Satya Nadella, who has a long history with
Microsoft, will take the helm for the software giant. Microsoft shareholders saw the move as
positive bidding up shares by nearly 1%.
Global markets continue to show signs of weakness. Asian markets finished the day lower while
European markets struggled only to catch a lift when US markets opened in the
green. Emerging market fears led by a slowdown
in growth in China are the driving forces behind the market’s uncertainty at
this point. The wind-down of central
bank support is one of the main reasons we’re seeing this volatility. Suffice it to say, the Fed has determined to
stay the course on their taper plans, perhaps signaling the US economy has more
stability than the markets believe. This
could be a good thing for markets in the long term.
No comments:
Post a Comment