Friday, June 13, 2014

Economic Journal - Friday, 6/13/2014



(As of 7:15 am PST)

US stocks opened slightly higher today, but the major indexes are still on pace to finish with the worst weekly losses in nearly two months.  Escalating tensions in Iraq caught investors by surprise mid-week and is the highest cause for investor concern.  An intensifying conflict between Sunni militants and the Iraqi government have sent oil prices soaring this week and may well be the event that disrupts the melt up we’ve seen in the financial markets recently.  So far, the market has shown a modest reaction.  In other news today, shares of Intel are soaring 7% after the chipmaker lifted its Q2 revenue guidance after the bell yesterday.  Economic data is light today, although a report on consumer sentiment showed sentiment declined in June.  Asian markets finished Friday trading mostly higher while European stocks fell over concerns in Iraq and comments out of the Bank of England which indicated a prospective rate hike. Volatility is picking up and it appears momentum may be shifting to the downside.  Expect another negative day today as investors keep a close eye on the situation unfolding in Iraq.

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