(As of 7:15 am PST)
US stocks opened lower as investors sifted through mostly
in-line data to start the session.
Jobless claims fell slightly last week to 312,000, in line with
expectations. Personal income inched up
as did overall personal spending. An
important report on inflation, known as the PCE index, rose in May to its
highest 12 month rate since October 2012.
The PCE index (personal consumption expenditure) is closely watched by
the Federal Reserve as an inflation indicator.
The acceleration over the past several months indicates inflationary
pressure is building. Stock prices were
pressured at the open and are further deteriorating after remarks from St.
Louis Fed President Bullard suggesting that he anticipates the first rate hike to come at the
end of Q1 2015. Markets sold off on the
comments as most analysts are pegging the Fed to raise rates in mid-2015. In any case, with rising inflation pressure
and easy money policies winding down, a Fed rate hike is imminent. European markets are following Wall St. lower
while Asian markets finished the session in the green. Gold and oil are down as are interest
rates. It looks like another
disappointing day for markets is shaping up.
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