(as of 7:15 AM PST)
There is a lot of data for analysts to chew on this morning. The biggest story is the huge increase in US oil supplies indicating that there is a glut of crude that is straining the storage capacity of the system. Crude oil supplies jumped by 14 million barrels, far exceeding estimates of a 3 million increase. Oil has fallen by 5% in the early going and may lapse into another free fall mode in the next few days. US economic data has been mixed indicating that the US economic recovery may not be a strong as thought. Leading economic indicators were up slightly, but below estimates. Likewise, the Philly Fed index, a measure of industrial activity in the Northeast, came in showing muted growth below expectations. On the plus side jobless claims were down, far more than analysts had hoped. Stock market indexes are mixed with the Dow and the S&P down modestly with the Nasdaq slightly positive, a continuation of yesterday's pattern. International markets are mixed. Asia was strong overnight while Europe is dealing with news of a setback in Greece/Euro negotiations for a bailout. Gold has recovered some of yesterday's losses. It seems we are in a holding pattern. Economic data shows just enough weakness to keep the Federal Reserve Bank at bay on interest rate increases and just enough strength to dampen hopes of future economic stimulus.
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