Thursday, January 8, 2015

Economic Journal - Thursday, 1/8/2015

(as of 7:30 AM PST)
 
Talk about a turnaround!  Apparently buyers took an extended vacation and came back to the markets yesterday with a hunger for stocks.  This morning markets continued their robust recovery, up over 1% at the start and dissipating most of the ugly mini-correction of the five prior sessions.  The dollar continues to surge against world currencies while oil is stabilizing at multi-year lows.  Gold is up slightly with most other commodities in spite of a strong dollar environment.     Interest rates continue to fall with the yield of the ten year Treasury falling below 2%.  Jobless claims were down indicating that our fledgling economic recovery remains intact, but yesterday’s drop in exports was a little disturbing.  While the balance of payments deficit was down due mostly to lower oil imports, the fact that exports dropped is reflecting weakness of international markets and might impair this coming earnings report season which starts next week.  It's hard to believe we are only one week into the New Year and have seen such a volatile stretch in such a short period. 

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