Friday, February 27, 2015

Economic Journal - Friday, 2/27/2015



(As of 7:20 am PST)

US markets opened slightly below the unchanged line as investors reacted to mixed economic data and geared up for another landmark day as the Nasdaq composite index approached 5,000.  Stock futures moved early as the second revision of Q4 GDP showed the US economy grew at a slower pace than originally expected. According to the second revision, the economy grew at a 2.2% pace versus a prior estimate of 2.6%. Shortly after the bell, a report on Chicago PMI caught investors by surprise with PMI dropping to a five-and-a-half year low, from 59.4 in January to 45.8 in February. Reasons cited for the contraction included the West Coast port strike and the harsh winter that has struck most of the nation. Lastly, a report on housing activity showed pending home sales rose in January to the highest level since August 2013.  Europe and Asia are mixed on the day but, along with US markets, were on pace to record strong gains for February. Oil is up 1.5% today, looking to add to positive gains seen this month, while Gold is trading flat. If markets can hold on today, they would close out a strong February rally that saw record setting highs on most US benchmarks while erasing a dreadful January trading month.  

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