Friday, December 19, 2014

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.

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