(As of 7:20 am PST)
Stocks are retreating this morning as investors sifted
through a surge of economic data including weekly jobless claims, industrial
production, and manufacturing reports.
Most of the data came in positively, with several reports beating
expectations, but negative sentiment has taken hold early as a bout of profit
taking appears underway. Let’s look at a
few of the reports. Less people filed
for unemployment benefits last week as jobless claims fell to 297,000 from
321,000, the lowest level since 2007. Manufacturing activity sky-rocketed in
the New York region in May, according to the Empire State Manufacturing
index. The consumer price index rose
0.3% last month, for a 2% rise in the past 12 months. One negative report today showed industrial
production dropped 0.6% in April, a faster pace than was expected. Also disappointing was a reading on the
Philly Fed manufacturing index which showed activity declining in April. Earnings are also under close watch
today. Wal-Mart Stores is seeing some
pressure after reporting disappointing quarterly results. Cisco Systems, on the other hand, is rallying
7% to lead all tech stocks, after beating earnings estimates yesterday.
Interest rates are plummeting as investors flock to the safe haven US
treasury. It looks like a risk-off day today
for the stock market.
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