Tuesday, October 28, 2014

Economic Journal - Tuesday, 10/28/2014



(As of 7:10 am PST)

US stocks moved higher at the open despite a surprise reading on the US durable goods report.  Stock futures were higher prior to the session on optimism over a positive European trading session. Gains were trimmed right after the open, as orders for durable goods came in surprisingly low for September.  After a sharp decline in August, analysts expected a rebound for orders of large-ticket items, but orders fell short, falling -1.3% for the second straight month of declines. In other economic news, a report on housing showed home price growth slowing in August, nudging up 0.2% for the month according to the S&P/Case-Shiller Index.  Despite two uninspiring economic reports, stock gains remained firmly higher. Investors are looking ahead to the FOMC’s rate decision later this week. Markets are expecting the announcement of the end of the Fed’s quantitative easing program but a dovish tone around an interest rate hike decision and the ability for the Fed to remain accommodative if need be. There’s plenty of earnings to wade through as well today, with the session wrapping up with a report from Facebook after the bell. Most international markets are higher while gold and oil prices are trading around the unchanged line.

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