Economic Journal - Wednesday, 12/31/2014

(as of 7:00 AM PST)

The small amount of economic data today has been negative, perhaps reflecting some effects of the plunge in the price of oil.  Jobless claims were the highest in over a month while the Chicago PMI number dropped from 60 to 58.  PMI numbers reflect economic activity in different regions and give snap readings of activity in that area.  Anything over 50 indicates expansion, so the Chicago number still reflects a vibrant economic picture in that region.  The stock market started mildly to the upside but is giving up gains in what is sure to be a quiet boring day of trading as the year wraps up.  The biggest story is that oil continues its relentless decline, down another 3%, dropping below $53 dollars per barrel, a far cry from earlier this year when it sold for well over $100 per barrel.  Gold is down slightly after yesterday's strong recovery.  Interest rates are stable and international news is very quiet.  Expect stocks to give up gains as the day continues with little movement either way.  We at Miller Financial Group would like to wish you all a Happy and Prosperous New Year!!!

Economic Journal - Tuesday, 12/30/2014

(as of 7:05 AM PST)

Mild losses come to the stock market this morning after a week of impressive gains.  Volume continues to be low in the holiday shortened week.  The narrow losses are in contrast to most international markets which were down over 1%.  Yields of the 10 year US note continue to decline with foreign investors seeking the safety of the US dollar.  Oil is up slightly, but has traded both ways already this morning.  Gold has recovered most of yesterday's sharp decline.  One of the very few data points released today was consumer confidence, which was up.  There is not much to drive the market significantly before year end. 

Economic Journal - Monday, 12/29/2014

(As of 7:10 am PST)

US stocks opened near the unchanged line as the Dow Jones Industrial Average looked to sustain a seven-session winning streak. An empty economic data calendar had investors turning elsewhere for news. Renewed uncertainty over Greece’s political and financial situation sent European stocks lower and may prevent US markets from breaking out today. Asian markets finished Monday’s session mostly higher. Oil is up slightly, trading just above $55 per barrel, while gold and other precious metals are lower. Interest rates and the US dollar are also down. In another holiday shortened week, expect muted market action as trading volumes will remain lower than normal throughout the week.

Economic Journal - Wednesday, 12/24/2014

(as of 6:45 AM PST)

It has been a great run up to the Christmas holiday!  Don't expect much activity today with a short day of trading.  A good jobless claims number is not likely to awaken investor activity and don't be surprised to see a small, but uneventful pullback as the morning moves along.  Oil resumes its downward trajectory and gold is down slightly as well.  We wish you all a very Merry Christmas!

Economic Journal - Tuesday, 12/23/2014

(As of 7:05 am PST)

The Santa Claus rally continues to pick up steam as US stocks opened higher this morning.  The Dow Jones Industrial Average pushed past 18,000 for the first time ever, as investors cheered an upwardly revised Q3 GDP figure amidst other mostly positive data. GDP growth rose to a 5% annual pace in the third quarter blowing past analysts’ expectations. The surprise push was due mostly to a large increase in consumer spending, likely reflecting the positive effects of lower gas prices in the past several months. Other data showed durable goods orders declining last month while a report on consumer spending showed spending rising to the fastest pace in 3 months in November. International markets are mixed with Asian indexes finishing mostly lower, while European stocks inched higher. Gold is lower today while oil is up slightly. Due to low holiday trading volumes expect markets to maintain their current course throughout the remainder of the week.

Economic Journal - Monday, 12/22/2014

(as of 7:00 AM PST)

It has started out very quiet this morning with a mixed market and is likely to stay that way this week since many traders are taking the week off for Christmas vacation.  Expect stocks to meander around the unchanged mark with some slight positive bias based upon last weeks amazing turnaround.  Oil is down again after showing signs of an upward breakout on Friday while precious metals and currencies are close to unchanged. 

Economic Journal - Friday, 12/19/2014

(As of 7:10 am PST)

It’s a quiet start for US stocks this morning, as investors caught their breath after two straight sessions of extraordinary gains. Yesterday’s rally, which saw the Dow up over 400 points, came after Wednesday’s reassurance from the Federal Reserve that rate increases would be slow and steady into 2015. A turn around in oil prices yesterday also helped to rally stocks.  It appears Friday’s session will be a quiet one. An empty economic calendar and a day known as quadruple-witching day (when various options contracts expire simultaneously) should keep gains to a minimum today. In overseas action, markets were mixed. Asian indexes finished the day higher on the heels of Wall Street’s explosive gains yesterday. European stocks are yet to follow suit with most indexes down for the day and poised to finish the week modestly lower. Two Fed officials are set to speak later in the day, with expectations that they will reiterate Fed Chair Janet Yellen’s remarks on monetary policy earlier in the week. Commodity prices are higher with oil climbing 3% today despite a very volatile week. Interest rates are lower while the US dollar is flat. With many traders leaving on Christmas break, expect market action to be quiet in the next few sessions.