Economic Journal - Wednesday, 11/26/2014

(As of 7:10 am PST)

US stocks opened little changed this morning as investors waded through several economic reports prior to the extended holiday weekend. Data has been mixed so far this morning. A report on durable goods orders came in better than expected for October while a report on personal spending and income was slightly below expectations. Jobless claims jumped unexpectedly last week to the highest level seen in 11 weeks. Manufacturing activity, as measured by the Chicago PMI, slowed in November while a report on housing showed new home sales ticking up 0.7% in October, slightly below expectations. Lastly, the final reading of the University of Michigan/Thomson Reuters consumer sentiment showed sentiment slipping slightly in November. Expect volume to be light today especially as the day wears on as traders shut down for the holiday weekend. The US stock market will be closed for Thanksgiving tomorrow and will re-open for trading on Friday. Have a happy and safe Thanksgiving weekend!

Economic Journal - Tuesday, 11/25/2014

(As of 7:10 am PST)

Stocks opened mildly higher this morning after the S&P500 and Dow Jones Industrial Average closed at record levels Monday. A surprise upward revision to third quarter GDP sent stocks higher at the opening bell. The second estimate of GDP showed growth expanding to a 3.9% pace in the third quarter, faster than the 3.5% previously reported. On average, the US economy has grown by 4.3% in the past two quarters, the fastest stretch since 2003. Heading into the final months of 2014, it appears the US economy continues to accelerate at a strong pace, supporting the stock market gains we’ve seen in the past several weeks. In other economic news, a report on home prices showed home price growth slowing in September, but better than analysts expected. Also keeping a lid on gains was a retreat in consumer confidence, as a report showed confidence falling in November. Overseas action is fairly quiet today with market indexes mixed on the day. Commodity prices are higher while interest rates continue to fall with the 10 yr. treasury yield back down to 2.29%. 

Economic Journal - Monday, 11/24/2014

(as of 7:00 AM PST)

 

There is not a lot to report this morning.  Stocks are up a small amount, likely a result of echos of financial stimulus news which were announced last week in Japan and China.  Oil and gold are flat on a day when there is no significant economic data coming out.  Stocks may take this 'time out' to consolidate and regroup.  Expect a downward drift as investors evaluate stock indexes at record levels.

Economic Journal - Friday, 11/21/2014

(As of 7:00 am PST)

Stocks are soaring at today’s open with US indexes up over 1% and on pace for another week of gains. A surprise rate cut from China’s central bank along with dovish comments out of European Central Bank President Mario Draghi, helped to send global equities higher to close out the week. The People’s Bank of China announced today that it cut its key lending rate by 0.4% to 5.6%. The rate cut was the first of its kind in over 2 years for China, as the central bank moves forward on efforts to strengthen economic growth in the region. Asian markets responded positively, with stocks rallying to finish week. Optimism carried into the European open. Investors applauded the China news along with comments from Mario Draghi that the ECB would step up its stimulus programs in an effort to see inflation pick up to the central bank’s target. European stocks soared, with most indexes up well over 2%. The risk trade is on today with commodity prices higher as well. We haven’t seen a move like this in several weeks, with indexes breaking out to new records.  Could the Santa Claus rally be under way? We’ll find out as we head into a jam packed holiday shortened week next week.