Friday, October 17, 2014

Economic Journal - Friday, 10/17/2014



(As of 7:20 am PST)
 
Upbeat earnings reports and positive economic data have sent stocks rallying to close out this volatile week. Economic data provided a boost in early morning action as reports on housing starts and building permits came in better than expected. Also adding to the momentum was a strong reading of the University of Michigan consumer sentiment report, which rose ahead of expectations for October and reached the highest level since July 2007.  Earnings beats from big names like General Electric, Honeywell, and Morgan Stanley also sent stocks climbing. Today’s gains come a day after a choppy session for Wall Street  in which markets opened down over 1% and ended the day near the unchanged line. Several comments from Federal Reserve officials throughout the day that economic stimulus could be re-applied if needed, helped markets to stabilize and reduce losses.  European markets are poised to finish with a strong day of gains while Asian markets finished mixed. Oil is higher on the day after falling to multi-year lows over the past several weeks. Gold is lower and interest rates are higher. Today’s rally (if it can hold) would be a nice way to finish a very turbulent week for global equity markets.  

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