Friday, September 19, 2014

Economic Journal - Friday, 9/19/2014

(as of 7:00 AM PST)
 
International market rallies are spilling over to US markets this morning but the big news is, clouding all fundamentals, the arrival of the biggest Initial Public Offering (IPO) in US history; Alibaba, the Chinese internet marketing giant.  The issue itself is fraught with risk, but it is highly oversubscribed and is sure to open at a big premium.  After the initial fury of buying, we may see some early investors unload shares to take profits so don't be surprised to see a dip after the initial euphoria fades. Economic stimulus in Asia has most markets there on the rise, while the 'NO' vote for Scottish independence has Europe markets rallying.  US economic data is light.  US leading economic indicators came in at a very meager .2% increase, but all of the other news is dominating investor sentiment.  On another note, we could see great volatility today since it is also a day when options and futures are both expiring.  Gold continues its downward journey while oil is down slightly.  Interest Rates are stable.

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