(As of 7:20 am PST)
US stocks opened flat this morning while international
markets took a beating following yesterday’s sell-off on Wall Street. Investors remain cautious heading into
today’s market action, despite upbeat reports on the US labor market. Weekly jobless claims fell more than expected
and Challenger job cuts fell to the lowest level in 14 years. Another report showed factory orders falling
10.1% in August, slightly worse than expected.
Recent upbeat data, although positive for the economy, is fueling
worries that the Federal Reserve may raise interest rates sooner than later. It
seems the days of ‘easy money’ are winding down and investors are getting nervous. In overseas action, the European Central
Bank left its key lending rate unchanged. Markets were hit hard as ECB
President Mario Draghi discussed policy actions to increase stimulus for the
struggling economy in Europe. Gold and
oil prices continue to slide, with oil falling below $90 per barrel. Interest rates came back slightly after the
10 yr. treasury fell sharply on yesterday’s selloff. The negative momentum is taking hold again in
the early going and it looks like we could be in for another volatile day.
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