Thursday, January 22, 2015

Economic Journal - Thursday, 1/22/2015



(As of 7:15 am PST)

US stocks are trading near the unchanged line as investors sifted through the details of the European Central Bank’s long awaited stimulus program announced earlier today. Shortly before Wall Street’s open, ECB President Mario Draghi took to the podium at a press conference in Frankfurt, announcing the rollout of a monetary stimulus program that includes the purchase of 60 billion euros per month. The program is expected to continue until September 2016 but remains open ended as policymakers hope to stimulate a slumping Eurozone economy. The reaction to the announcement was muted in Europe, perhaps reflecting that investors had already “priced in” the move in ahead of today’s announcements.  At home, traders were also sifting through economic data and earnings reports in the early going. Jobless claims fell last week but remain above 300,000. A report from the Federal Housing Finance Agency showed US house prices rose 0.8% in November, better than the prior month’s 0.4% rise. Mixed earnings results are coming in, with big names like Verizon, Southwest Airlines, Starbucks and Travelers Insurance all reporting today. Oil prices are slightly lower while gold is flat. Interest rates are lower while the US dollar is up.

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