(As of 7:30 am PST)
Stocks opened lower Tuesday as investors reacted to
disappointing economic data. Two
separate reports on housing, building permits and housing starts, surprised
investors. Both reports came in lower
than expected - a sign that the housing recovery may be losing steam. Also, a report on inflation showed the
consumer price index rose a seasonally adjusted 0.4% in May, its highest since
2012. Investors immediately reacted to
the data by pushing stocks lower, but since the open stocks have come back to
trade slightly in the green. Today kicks
off the Federal Reserve’s two-day policy setting meeting which will conclude
tomorrow afternoon. Investors will be
looking for communication around the Fed’s plan for a future rate hike and with
today’s inflation data, there’s thought that the Fed may move sooner than
expected. In international markets, Asia
finished mixed while European markets are following Wall St. higher at the
close. Gold and oil are taking a
breather after rallying the past week on worries over the Iraqi conflict. Tensions in the Middle East remain the chief
concern for capital markets around the world and will likely dominate headlines
for the next several weeks.
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