(As of 7:00 am PST)
US stocks opened higher as
positive earnings announcements and merger news trumped economic data.
Investors shrugged off news that came late yesterday afternoon that the
European Central Bank would no longer accept Greek debt as collateral. The move
by the ECB indicates a contentious negotiation may be shaping up between Greece
and its lenders. The news is holding back European markets today with all the
major indexes in the red. At home, economic data was mostly disappointing.
Jobless claims rose from the prior week, while the US trade balance also
widened more than expected. Earnings reports and merger news added strength to
the US markets however. Oil is up 2.7% today after yesterday’s losses while
gold is slightly lower. Interest rates are also inching up. Markets look to be
strengthening in the early going. With the S&P500 testing key resistance
levels, we’ll see if the bulls can push through to the upside today.
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