(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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