Tuesday, January 20, 2015

Economic Journal - Tuesday, 1/20/2015



(As of 7:10 am PST)
 
Stocks opened near the unchanged line but have since seen downward pressure as investors returned to trading after yesterday’s Martin Luther King Jr. holiday closed US markets. The main focus for this week will be outside the US, as investors look to Thursday’s meeting with the European Central Bank.  Most analysts and traders are expecting Mario Draghi and the ECB to announce the beginning of its QE bond-buying program Thursday. European markets have rallied in the past week ahead of this week’s ECB meeting and the perceived ‘easy-money’ policies that are set to begin Thursday. Earnings announcements picked up today with mixed reports from Morgan Stanley, Johnson & Johnson, and Halliburton weighing on markets at the open. Also adding to the negative sentiment is a 5% drop in crude oil bringing the price per barrel back to $46.50 after rallying Friday. Gold is higher today and interest rates are down as more money moved into ‘safe haven’ assets than risky assets.

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