(As of 7:15 am PST)
US stocks opened sharply lower
today as markets took in surprisingly weak economic data including a
disappointing report on durable goods orders.
US durable-goods orders fell 3.4% in December, much more than analysts
expected, marking the fourth decline in the past five months. The November
reading was also downgraded to a 2.1% decline from a 0.9% drop. Excluding the
volatile transportation sector (namely aircraft orders), orders will still down
0.8% in December. The recent weakness in
durable goods has analysts worried about future business investment in 2015,
which would impact GDP growth in the year ahead. Adding to the negative
sentiment early was a string of disappointing earnings reports from Microsoft,
Caterpillar, and Freeport-McMoRan. Also catching headlines is iPhone maker,
Apple Inc., who is expected to report first-quarter earnings results after the
bell today. International markets are not much better than at home. Asian
indexes finished the day mixed, while European stocks are headed towards a
negative close. Commodities are up while the US dollar is down. Interest rates
are sharply lower with the 10 yr. treasury moving to 1.75% as investors flocked
to the safe haven. Profit taking seems to be the order of the day for US
markets. Hopefully losses will dissipate as the day wears on and the “smart
money” moves in.
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