(as of 7:00 AM PST)
Investors are on edge this morning despite some sparkling economic data showing that the US economic recovery is expanding. Jobless claims plunged to their lowest level since 2000 and was a much better report than analysts had expected. There is still fallout from the Federal Reserve Boards announcement yesterday where they stood by their projection of a mid-year interest rate hike. Interest rates hikes mean that easy money policies are reduced and investors must reduce their leverage on all types of investments. Much of the last few year's market advance has been fueled by easy money policies of the Fed and any signs of tightening might result in selling assets in a broad spectrum. Gold is down sharply today while oil has stabilized at low levels not seen in years. Profit reports have shifted from positive to very soft, with many companies expressing caution about future quarterly profits. While the Dow Jones Average is on the plus side, other indexes are down. Surprisingly, there is more strength in international markets than US markets. Expect some upward bounce as the day wears on as investors react to the Fed's view of a strengthening economy.
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