Tuesday, September 23, 2014

Economic Journal - Tuesday, 9/23/2014



(As of 7:20 am PST)

US stocks opened with a cautious tone this morning.  Weak data out of Europe sent European markets sharply lower and was cause of concern for US investors early.  Better-than-expected manufacturing data out of China was largely overlooked as momentum turned negative right from the open.  Geopolitical fears are also adding to the negative sentiment the morning after the US conducted its first round of airstrikes against the Islamic State in Syria. Economic data is light again this morning with a report on home prices showing prices inched higher in July, but at a slower pace than expected.  Oil and gold are higher as is the safe-haven treasury forcing a drop in interest rates.  With a Federal Reserve that remains accommodative many strategists are continuing to call this environment for stocks favorable. However that doesn’t mean a slight pullback in the short term may also be due.  Expect volatility to pick up throughout the day and week as investors assess portfolio positions and strategies heading into the 4th quarter.

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