(As of 7:20 am PST)
Yesterday’s stock rally was short-lived with today’s
action giving back nearly all of yesterdays gains. Disappointing economic data fueled the
selling pressure early. Orders for
durable goods plunged 18.5% in August, a record decline, after gaining 22.5% in
July. The swing was due in most part to
the normally volatile transportation sector. Boeing for example signed 324
contracts in July compared to only 107 in August. Stripping out the transportation sector,
durable goods orders increased by 0.7%. In other economic news, jobless claims
rose 12,000, still hovering near an 8 month low. The tech heavy Nasdaq is leading the declines
for the major indexes. Shares of Apple
are down 2.5% dragging many tech stocks lower.
In international markets, Asian finished mixed after news that China is
considering replacing its current central bank chief. European markets were on the decline most of
the day despite dovish remarks from ECB President Mario Draghi who signaled the
central bank is considering another round of QE to help tackle low
inflation. Treasuries rallied on the remarks
sending interest rates lower. Gold is down while oil added slightly.
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